McCarthy sees little progress on U.S. debt limit talks

STORY: Democratic and Republican staff were working to find common ground on spending levels and energy regulations before a 3 p.m. EDT (1900 GMT) Tuesday meeting between Biden, McCarthy and the three other top congressional leaders.

But McCarthy said he saw little sign of progress ahead of the meeting with McCarthy, Democratic Senate Majority Leader Chuck Schumer, top Senate Republican Mitch McConnell and top House Democrat Hakeem Jeffries.

“I don’t think we are in a good place,” McCarthy told reporters at a news conference

Biden made no public comments on the state of the negotiations on Monday, after telling reporters on Sunday he thought both sides wanted to reach a deal. "I think we'll be able to do it," he said.

Biden's trip will leave little time for the two sides to reach a deal before the U.S. runs out of money to pay its bills, which Treasury officials say could come as soon as June 1.

A first-ever U.S. default would plunge the country into recession and inject chaos into global financial markets, economists say, and the standoff has started to worry investors and consumers.

Republicans, who control the House, have said they will not vote to raise the debt ceiling unless Democrats agree to sharp spending cuts.