While 'Right People' Solve Debt Ceiling Debate, Where's McCarthy? Not In The Room

House Speaker Kevin McCarthy has been throwing shade at President Joe Biden for days over U.S. debt, and what to do about it.

After all his vitriol, the California Republican said he can "see now where a deal can come together," touting that the "right people" are in the room discussing it. The comment opened McCarthy up for plenty of mockery on Twitter.

What Happened: McCarthy told reporters Thursday at the Capitol that "we're not there" regarding a debt ceiling resolution. "But I see the path," he added.

See Also: Key Trading Levels Factored In By Options Market Amid Debt-Ceiling Impasse

McCarthy indicated that negotiators on the federal debt limit may reach an agreement as soon as this weekend.

"Where we were a week ago and where we are today is a much better place because we’ve got the right people in the room discussing it in a very professional manner with all the knowledge and all the background from all the different leaders and what they want," McCarthy said.

Who are the negotiators? According to CNN:

• Longtime Biden aide and counselor Steve Ricchetti
• Office of Management and Budget Director Shalanda Young (former staff director of the House Appropriations Committee)
• Legislative Affairs Director Louisa Terrell
• Republican Congressman, and McCarthy pal, Garret Graves from Louisiana

Why It Matters: Biden has indicated that he'd be open to discussions with McCarthy if McCarthy had a plan.

Now, it appears, Graves has been appointed to hash out that plan. The GOP demands are said to be limiting growth in government spending to 1% a year and blocking Biden's student loan forgiveness program. McCarthy also wishes to cut funding for the Internal Revenue Service, impose strict requirements for Medicaid, and stymie Biden’s attempts to create a low-carbon economy to offset climate change.

Treasury Secretary Janet Yellen says June 1 is the deadline. Otherwise, the U.S. government might be unable to pay its obligations and government jobs would be in jeopardy, along with monthly payments to millions of Social Security beneficiaries. 

Also, if the standoff continues, that could exacerbate a recession. Economists expect a recession in the second half of 2023 regardless of the debt ceiling outcome.

What's Next: If the players involved come up with an agreement, McCarthy's chamber will pencil in a time to consider the deal by next week, per Bloomberg News.

Stock Movement: The SPDR S&P 500 ETF Trust SPY was up 0.27% at $416.34 at last check, according to Benzinga Pro. The Invesco QQQ Trust Series 1 QQQ was up 1.23% at $335.20.

See Also: Peter Schiff Says Raising Debt Ceiling Won't Preserve U.S. Prosperity, But This Will

Image: Pixabay.