By Ketki Saxena
Investing.com -- President Joe Biden has made it clear that he will not entertain negotiations over the debt ceiling during his upcoming meeting with top congressional leaders on May 9. The White House announced Tuesday that he is instead open to initiating "a separate budget process."
"He is not going to negotiate on the debt ceiling," stated White House press secretary Karine Jean-Pierre. However, she added that President Biden "is willing to have a separate conversation about their spending, what they want to do with the budget." It's worth noting that under former President Donald Trump's administration, Congress agreed upon three increases in the debt limit without any complications.
The president extended invitations to four key Senate and House of Representatives leaders—two Democrats and two Republicans—to join him at the White House next week.
In preparation for this crucial May 9 meeting at The White House, President Biden reached out personally via phone calls: Republican House Speaker Kevin McCarthy received his call while visiting Jerusalem on diplomatic business. It is worth mentioning that President Biden has not discussed the issue with Speaker McCarthy since February.
Minority Leaders in both chambers of Congress, Republican Senate leader Mitch McConnell and House Democratic leader Hakeem Jeffries; and Senate Majority Leader Chuck Schumer were also contacted.
The statement from the White House follows a warning from the U.S. Treasury that the government could face a cash shortage as early as June 1.
Treasury Secretary Janet Yellen informed Congress in a letter that her department may be unable to fulfill all U.S. government payment obligations as early as June 1 if lawmakers fail to take action, adding urgency to political maneuvering in Washington D.C., where both parties are bracing for a prolonged confrontation.