Biden, McCarthy Closer To A Debt Ceiling Deal; Decision Could Be Made By 'Next Week'

President Joe Biden and House Speaker Kevin McCarthy on Tuesday appeared closer to reaching a deal on the country's debt ceiling as a threat of default looms.

Biden and McCarthy met Tuesday afternoon to discuss solutions to breaking the standoff on the debt ceiling. While no deal was reached during the meeting, McCarthy hinted at making progress in the talks, adding that an agreement could be reached next week.

"It is possible to get a deal by the end of the week. It's not that difficult to get to an agreement," he told reporters.

Biden also echoed a similar positive sentiment following the meeting, telling reporters that he was confident the negotiations will progress due to an "overwhelming consensus" not to let the country default on its debt.

"There is still work to do but I made it clear to the (House speaker) and others that we'll speak directly over the next several days and the staff is going to continue meeting daily to make sure we do not default," he said. "I'm confident we're gonna continue to make progress toward avoiding default and fulfilling America's responsibilities as a leader on the world stage."

Biden, who departs for Japan to attend the G7 Summit on Wednesday, said he will continue discussions with congressional leaders by phone and would meet with them upon his return. He has also cut his foreign trip short, canceling his upcoming visits to Papua New Guinea and Australia to attend "final negotiations with congressional leaders" over the country's debt ceiling, White House press secretary Karine Jean-Pierre said in a statement.

Biden and congressional leaders have met several times over the past week to discuss a solution to the country's debt ceiling and the looming default. Republicans have so far refused to lift the debt ceiling past the current $31.3 trillion unless Biden and Democrats agree to impose spending cuts in the federal budget.

The U.S. could default on its debt as early as June 1. If it does default, federal employees and the military could see late payments. Veterans could also begin receiving delayed checks. Hundreds of thousands of jobs could also be cut across the country.