McCarthy warns America's debt is 'a ticking time bomb'
House speaker hit out at President Biden during NYSE speech for refusing talks to cut spending
Rep. Ben Cline, R-Va., argues President Biden is acting like a spoiled child while House Speaker Kevin McCarthy acts like the adult in the room.
House Speaker Kevin McCarthy warned in a speech at the New York Stock Exchange on Monday that America's debt is unsustainable and a threat to the nation, hitting out at President Biden for refusing to negotiate on cost-cutting measures.
"Without exaggeration, American debt is a ticking time bomb that will detonate unless we take serious, responsible action," McCarthy, R-Calif., said. "Yet how has President Biden reacted to this issue? He has done nothing."
House Speaker Kevin McCarthy delivers a speech on the economy at the New York Stock Exchange in New York on April 17, 2023. (Photo by TIMOTHY A. CLARY/AFP via Getty Images / Getty Images)
McCarthy said he met with Biden on Feb. 1 to discuss budget cuts and said the president agreed at the time to negotiate in good faith, but the House speaker has not heard back from the White House since.
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"The longer President Biden waits to be sensible to find an agreement, the more likely it becomes that this administration will bump into the first default in our nation's history," McCarthy said. "Addressing the debt requires us to find common ground and reduce spending."
House Speaker Kevin McCarthy (R) tours the floor of the NYSE along NYSE President Lynn Martin (L) on Wall Street April 17, 2023, after he delivered a speech to the New York Stock Exchange. (Photo by TIMOTHY A. CLARY/AFP via Getty Images / Getty Images)
The California Republican then announced that the GOP-led House will vote on raising the debt limit – currently at $31 trillion – in coming weeks to avoid a default, but said the legislation would include provisions rolling federal spending back to fiscal 2022 levels and limit subsequent spending increases to no more than 1% per year over a decade.
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The White House said ahead of McCarthy’s address that "a speech isn’t a plan," dismissing his overture and re-upping pressure on the Republican leader to approve a debt ceiling increase with no strings attached.
President Joe Biden delivers remarks about the economy on Oct. 7, 2022, in Hagerstown, Maryland. (Chip Somodevilla/Getty Images / Getty Images)
"There is one responsible solution to the debt limit: addressing it promptly, without brinksmanship or hostage-taking," said White House Deputy press secretary Andrew Bates.
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The Treasury Department has said it is taking "extraordinary measures" to continue paying its bills, but money will run short this summer.
FOX Business' Eric Revell, Elizabeth Elkind and The Associated Press contributed to this report.