US President Joe Biden says he still thinks a debt default can be avoidedWASHINGTON - Talks to avoid a US debt default were on a knife edge Saturday as President Joe Biden warned he would not accept"extreme" Republican demands but said he remained optimistic.
Republicans, who control the House of Representatives, are demanding steep budget cuts as a price for allowing an extension of the government's borrowing authority. The White House is seeking to whittle down Republican demands, while arguing that the traditionally uncontroversial annual debt ceiling increase is being weaponized for political gain.
Biden, on the other side of the world for the gathering of rich democracies, was briefed on the situation early Saturday, which was still Friday night in Washington, the White House said. Republicans argue that the more than $31 trillion in US national debt is too high to accept and that there should be agreement on getting the books more balanced, rather than simply authorizing a still-higher debt allowance.