Debt ceiling deadline overshadows Biden’s G7 Summit meeting

(CNN, KYMA/KECY) - The early look at the markets is grim after President Biden's issued a stark warning on the state of the debt ceiling talks.

Time is running out for a deal, and the stakes could not be higher, as experts say the U.S. failing to lift the debt ceiling would lead to an economic crash.

Biden spoke with Republican leaders as he traveled home today from Japan, where he was able to reach agreements on major assistance to Ukraine.

Hours after making gains abroad with world leaders, Biden is facing setbacks at home with Republican lawmakers.

Farther apart

In less than two weeks, the nation is likely to default unless the debt ceiling is lifted on June 1, a date the Treasury Secretary reaffirmed Sunday.

As the deadline closes in, Biden showed the two sides are farther apart.

"Now it's time for the other side to move from their extreme position because much of what they’ve already proposed is simply, quite frankly, unacceptable," Biden said.

The President also gave this warning about Republicans saying, "I can't guarantee that they wouldn't force a default by doing something outrageous."

Productive phone call

Republicans blame Biden for waiting too long to negotiate and now, they say, changing positions, such as bringing back tax increases when the issue had been taken off the table, according to House Speaker Kevin McCarthy.

"I mean waiting those 97 days and now changing positions everyday. That's not productive. I'm glad he's finally getting back into the country," McCarthy said.

But the speaker sounded more optimistic after speaking with the president as he flew back from Japan.

"I believe it was a productive phone call," McCarthy expressed.

Long shadow over G7 Summit

The debt ceiling threat is casting a long shadow over the president's achievements at the G7 Summit, helping Ukraine against the Russian invasion.

Before returning to the U.S., he sat down with Ukrainian President Volodymyr Zelenskyy.

Zelenskyy thanked Biden for approving the training of his pilots on the F-16 fighter jet and for the U.S. granting another $375 million in military aid.

McCarthy says he plans to meet with the president at the White House Monday.