Both parties agree on the need for urgent action

The fear of an unprecedented American debt default is looming, after emergency talks at the White House between Republicans and Congressional leaders.

House of Representatives Speaker Kevin McCarthy told reporters the two sides are still far apart.

“It is possible to get a deal by the end of the week. It’s not that difficult to get to an agreement.”

Biden and McCarthy sat down in the Oval Office with Senate Majority Leader Chuck Schumer, House Democratic leader Hakeem Jeffries and Senate Republican leader Mitch McConnell.

“Default is the worst, worst alternative,” Schumer added.

Both parties agree on the need for urgent action.

A similar 2011 standoff over the debt limit led to a historic downgrade of the U.S. credit rating, sparking a sell-off in stocks and pushing the government’s borrowing costs higher.