Crunch talks between US President Joe Biden and senior Republicans have been postponed until early next week to allow staff to continue working, the White House said in a statement Thursday.&nbsp;

A source familiar with the meetings between Democratic and Republican leaders said this was a positive development and that talks between the two sides were progressing, making Friday not the right moment for the leaders to meet.

But the Republican speaker of the House of Representatives, Kevin McCarthy, accused Democrats, including Senate Minority Leader Chuck Schumer, of holding up the deal.&nbsp;

"President Biden and Senator Schumer are stuck on no, they have no plan, no proposed savings and no clue," he told reporters shortly after the White House announced the talks had been postponed.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/us-pres-biden-house-speaker-mccarthy-meeting-on-debt-ceiling-ends-with-no-movement-talks-to-continue-590804">US Pres Biden, House Speaker McCarthy meeting on debt ceiling fails to break deadlock, threat of default looms</a>

"The staff has met the last two days, we think it's productive for the staff to meet again," McCarthy said, adding he expected there would be another meeting between senior Republican and Democratic leaders next week.&nbsp;

Averting the 'X-date'&nbsp; 
 
The two sides remain sharply divided over the debt ceiling, with Republicans in Congress insisting that Biden agree to significant budget cuts in exchange for support to lift the limit before the country runs out of money to pay its existing bills.

Democrats have been calling for a "clean" increase of the borrowing limit, accusing Republicans of using extreme tactics to push their political agenda ahead of the so-called "X-date" -- the point at which the US will be unable to meet its financial obligations. 
 
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The planned talks between Biden and McCarthy were the second scheduled for this week, as both sides look to avoid the X-date, which US Treasury Secretary Janet Yellen has warned could come as soon as June 1.&nbsp;

President Biden suggested earlier this week that he may cancel a planned trip to Asia if talks do not yield a breakthrough on the debt ceiling.&nbsp;

Earlier this week, former president Donald Trump suggested at a CNN event that Republicans should trigger a default if Biden fails to agree to spending cuts.&nbsp;

"I say that the Republicans out there, congressmen, senators, if they don't give you massive cuts, you're gonna have to do a default," said Trump, who is the current frontrunner for the 2024 Republican nomination.&nbsp;

'Serious repercussions' 
 
Calls for the US to avert a debt default have been growing as the X-date approaches.&nbsp;

"The debt ceiling is potentially catastrophic," JPMorgan's chief executive Jamie Dimon said in interview with Bloomberg TV on Thursday.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/explained-whats-us-debt-ceiling-why-is-it-such-a-big-deal-554338">EXPLAINED: What's US debt ceiling &amp; why is it such a big deal?</a>

"People should remember the American financial system is the foundation to the global economic system," he said, adding he hoped a debt default could be avoided. &nbsp;

Earlier Thursday, the International Monetary Fund also warned of severe consequences if the US didn't pay its debts.

"Our assessment is that there would be very serious repercussions not only for the US but also for the global economy should there be a US debt default," IMF communications director Julie Kozack told reporters, encouraging all parties to urgently resolve the matter. 
 
&nbsp;

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Crunch talks between US President Joe Biden and senior Republicans have been postponed until early next week to allow staff to continue working, the White House said in a statement Thursday.

Crunch talks between US President Joe Biden and senior Republicans have been postponed until early next week to allow staff to continue working, the White House said in a statement Thursday. A source familiar with the meetings between Democratic and Republican leaders said this was a positive development and that talks between the two sides were progressing, making Friday not the right moment for the leaders to meet. But the Republican speaker of the House of Representatives, Kevin McCarthy, accused Democrats, including Senate Minority Leader Chuck Schumer, of holding up the deal. "President Biden and Senator Schumer are stuck on no, they have no plan, no proposed savings and no clue," he told reporters shortly after the White House announced the talks had been postponed. ALSO READ | US Pres Biden, House Speaker McCarthy meeting on debt ceiling fails to break deadlock, threat of default looms "The staff has met the last two days, we think it's productive for the staff to meet again," McCarthy said, adding he expected there would be another meeting between senior Republican and Democratic leaders next week. Averting the 'X-date' The two sides remain sharply divided over the debt ceiling, with Republicans in Congress insisting that Biden agree to significant budget cuts in exchange for support to lift the limit before the country runs out of money to pay its existing bills. Democrats have been calling for a "clean" increase of the borrowing limit, accusing Republicans of using extreme tactics to push their political agenda ahead of the so-called "X-date" -- the point at which the US will be unable to meet its financial obligations. ALSO READ | US debt limit crisis: Rise in market bets on probability of default The planned talks between Biden and McCarthy were the second scheduled for this week, as both sides look to avoid the X-date, which US Treasury Secretary Janet Yellen has warned could come as soon as June 1. President Biden suggested earlier this week that he may cancel a planned trip to Asia if talks do not yield a breakthrough on the debt ceiling. Earlier this week, former president Donald Trump suggested at a CNN event that Republicans should trigger a default if Biden fails to agree to spending cuts. "I say that the Republicans out there, congressmen, senators, if they don't give you massive cuts, you're gonna have to do a default," said Trump, who is the current frontrunner for the 2024 Republican nomination. 'Serious repercussions' Calls for the US to avert a debt default have been growing as the X-date approaches. "The debt ceiling is potentially catastrophic," JPMorgan's chief executive Jamie Dimon said in interview with Bloomberg TV on Thursday. ALSO READ | EXPLAINED: What's US debt ceiling & why is it such a big deal? "People should remember the American financial system is the foundation to the global economic system," he said, adding he hoped a debt default could be avoided. Earlier Thursday, the International Monetary Fund also warned of severe consequences if the US didn't pay its debts. "Our assessment is that there would be very serious repercussions not only for the US but also for the global economy should there be a US debt default," IMF communications director Julie Kozack told reporters, encouraging all parties to urgently resolve the matter. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US debt ceiling talks postponed until next week: White House

Republican U.S. House Speaker Kevin McCarthy on Wednesday unveiled a plan to raise the nation's debt ceiling by $1.5 trillion and cut federal spending by three times that amount, laying out an opening position in what is likely to be a tense partisan debate over government borrowing.

McCarthy's proposal, which he unveiled on the floor of the House of Representatives, would cut the total amount of domestic and military spending to 2022 levels and cap growth at 1% annually in years to come. It would not touch retirement and health programs that are projected to expand dramatically as the population ages.

President Joe Biden and the Democratic-controlled Senate are likely to reject the proposals, but McCarthy said they would serve as the basis for negotiations between the two parties over raising the federal government's $31.4 trillion debt limit in the coming weeks. Failure to raise the debt ceiling would lead to default which would shake the U.S. and world economies.

Also Read | <a href="https://www.wionews.com/world/jfks-nephew-robert-kennedy-jr-announces-2024-presidential-bid-at-campaign-launch-event-584213">JFK's nephew Robert Kennedy Jr announces 2024 presidential bid at campaign launch event</a>

McCarthy's plan would also repeal green-energy incentives signed into law by Biden last year, boost domestic oil and gas production and scrap his $400 billion student-loan forgiveness effort.

It would claw back unspent COVID-19 relief money, cancel a recent budget increase for the Internal Revenue Service and impose stiffer work requirements for some benefit programs.

Congress would gain greater power to block Biden administration regulations under the proposal as well.

McCarthy said the package would lower spending by $4.5 trillion over the coming 10 years. That would not be enough to eliminate budget deficits that are projected to add more than $20 trillion to the national debt over that time period.

"President Biden has a choice: Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation's history," McCarthy said on the House floor.

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He did not say when the House of Representatives, which his Republicans control by a narrow 222-213 majority, would vote on the plan.

Biden reiterated his position that Congress should raise the $31.4 trillion debt limit without conditions, as it did three times under his Republican predecessor, Donald Trump.

"Take default off the table, and let's have a real serious, detailed conversation about how to grow the economy, lower costs and reduce the deficit," he said at an appearance outside Washington.

Biden's budget, released last month, would save $3 trillion over 10 years largely through tax hikes.

The nonpartisan Committee for a Responsible Federal Budget praised McCarthy's plan as a "realistic and extremely welcome first step." But Democratic Representative Richard Neal dismissed it as "not serious."

Watch | India becomes home to nearly a fifth of humanity&nbsp;

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The US federal government has already reached the borrowing limit and by this summer is expected to hit a point where it will no longer be able to meet its financial obligations without action by the divided Congress.

Treasury Secretary Janet Yellen has warned the federal government could run out of ways to cover its debts by as soon as early June.

The $1.5 trillion increase proposed by McCarthy could cover the government's needs until early next year, setting the stage for another debt ceiling fight in the midst of the 2024 presidential election campaign.

It was unclear whether McCarthy's plan would unite House Republicans. A sizeable contingent of hardline members have dismissed the risks of failure to act, while others might balk at its limits on military spending.

A lengthy 2011 standoff over the debt ceiling led to a first-ever downgrade of the federal government's credit rating, which rattled markets and raised borrowing costs.

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Republican U.S. House Speaker Kevin McCarthy on Wednesday unveiled a plan to raise the nation's debt ceiling by $1.5 trillion and cut federal spending by three times that amount, laying out an opening position in what is likely to be a tense partisan debate over government borrowing.

Republican U.S. House Speaker Kevin McCarthy on Wednesday unveiled a plan to raise the nation's debt ceiling by $1.5 trillion and cut federal spending by three times that amount, laying out an opening position in what is likely to be a tense partisan debate over government borrowing. McCarthy's proposal, which he unveiled on the floor of the House of Representatives, would cut the total amount of domestic and military spending to 2022 levels and cap growth at 1% annually in years to come. It would not touch retirement and health programs that are projected to expand dramatically as the population ages. President Joe Biden and the Democratic-controlled Senate are likely to reject the proposals, but McCarthy said they would serve as the basis for negotiations between the two parties over raising the federal government's $31.4 trillion debt limit in the coming weeks. Failure to raise the debt ceiling would lead to default which would shake the U.S. and world economies. Also Read | JFK's nephew Robert Kennedy Jr announces 2024 presidential bid at campaign launch event McCarthy's plan would also repeal green-energy incentives signed into law by Biden last year, boost domestic oil and gas production and scrap his $400 billion student-loan forgiveness effort. It would claw back unspent COVID-19 relief money, cancel a recent budget increase for the Internal Revenue Service and impose stiffer work requirements for some benefit programs. Congress would gain greater power to block Biden administration regulations under the proposal as well. McCarthy said the package would lower spending by $4.5 trillion over the coming 10 years. That would not be enough to eliminate budget deficits that are projected to add more than $20 trillion to the national debt over that time period. "President Biden has a choice: Come to the table and stop playing partisan political games, or cover his ears, refuse to negotiate and risk bumbling his way into the first default in our nation's history," McCarthy said on the House floor. Also Read | Mysterious flash of light over Kyiv triggers panic in conflict-ridden Ukraine He did not say when the House of Representatives, which his Republicans control by a narrow 222-213 majority, would vote on the plan. Biden reiterated his position that Congress should raise the $31.4 trillion debt limit without conditions, as it did three times under his Republican predecessor, Donald Trump. "Take default off the table, and let's have a real serious, detailed conversation about how to grow the economy, lower costs and reduce the deficit," he said at an appearance outside Washington. Biden's budget, released last month, would save $3 trillion over 10 years largely through tax hikes. The nonpartisan Committee for a Responsible Federal Budget praised McCarthy's plan as a "realistic and extremely welcome first step." But Democratic Representative Richard Neal dismissed it as "not serious." Watch | India becomes home to nearly a fifth of humanity × The US federal government has already reached the borrowing limit and by this summer is expected to hit a point where it will no longer be able to meet its financial obligations without action by the divided Congress. Treasury Secretary Janet Yellen has warned the federal government could run out of ways to cover its debts by as soon as early June. The $1.5 trillion increase proposed by McCarthy could cover the government's needs until early next year, setting the stage for another debt ceiling fight in the midst of the 2024 presidential election campaign. It was unclear whether McCarthy's plan would unite House Republicans. A sizeable contingent of hardline members have dismissed the risks of failure to act, while others might balk at its limits on military spending. A lengthy 2011 standoff over the debt ceiling led to a first-ever downgrade of the federal government's credit rating, which rattled markets and raised borrowing costs. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Republican McCarthy unveils plan to lift US debt ceiling, cut spending

The U.S. House of Representatives elected GOP leader Kevin McCarthy of California as speaker in a dramatic 15th vote. Watch this video to know more.

Republican McCarthy elected House Speaker on 15th vote in historic run

Republican Kevin McCarthy has suffered his 14th defeat, failing to secure the votes needed to lead the US House of Representatives, Watch this video to know more.

News Alert: Republican McCarthy loses 14th attempt to become U.S. House speaker

McCarthy elected House speaker after 15 votes and days of negotiations