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The stock market soared more than 300 points today on news of a possible break to the political logjam here in Washington. House Republicans offered a short-term increase in the federal debt limit. House Republican leaders met this evening with President Obama. They didn't come to any agreement. But aides to the president and lawmakers continue to talk this evening.
NPR White House correspondent Scott Horsley joins me now. And, Scott, possible breakthrough we said. Is this real or is this really political maneuvering?
SCOTT HORSLEY, BYLINE: That's the big question, Melissa. Obviously, the markets are cheering for what they hope is a real resolution. Wall Street is in the mood for some good news. We are just a week away now from the end of the Treasury Department's borrowing authority and we'd be staring at a possible default at that point.
So just to back up a little bit, early today, House Republicans huddled amongst themselves, and afterwards the House Republican leader Eric Cantor came out and talked about what they were prepared to do.
REPRESENTATIVE ERIC CANTOR: What we have discussed as a conference is a temporary extension of the debt ceiling in exchange for a real commitment by this president and the Senate majority leader to sit down and talk about the pressing problems that are facing all the American people.
HORSLEY: So Eric Cantor is still talking about something of a quid pro quo there. But importantly, this short-term increase in the debt ceiling wouldn't come with partisan strings, like changes to the president's signature health care law.
BLOCK: And when we say short term, on the Republican side, they're talking about weeks. We also noted that this would not end the government shutdown, right, which is now in its tenth day. What are we hearing from the White House?
HORSLEY: Well, the White House has been cautious to this. First of all, they're not entirely sure if the Republican leaders can deliver the Republican membership on a plan like this. But the president met first this afternoon with Senate Democrats. Afterwards, Senate Majority Leader Harry Reid was asked if negotiations could go forward before the government reopened. He answered simply: not going to happen.
Then the president met with a group of House Republicans. They met for about 90 minutes. The Republicans spelled out their proposal, which include not only that short-term hike in the debt ceiling but also plans for a formal appointment of budget negotiators and immediate talks on how to reopen the government. According to the White House and the Republicans, no specific decisions were made during that meeting.
The Republicans left the White House without talking to reporters but they got back to the Capitol and here's how Republican Congressman Paul Ryan characterized the conversation.
REPRESENTATIVE PAUL RYAN: We put an offer on the table. We had a long, frank conversation about it. And he - we agreed to continue talking and continue negotiating. So he didn't no, he didn't say yes. It's a neither,
HORSLEY: And those negotiations continue tonight, Melissa, at the staff level.
BLOCK: And do we get a sense at all, Scott, of whether the White House is giving some ground to try to meet the Republicans somewhere?
HORSLEY: Well, again, the president had said before he wanted the government as well as the debt ceiling increased before he'd negotiate. But there could be some semantics here, you know. What's a negotiation and what is simply a conversation? White House spokesman Jay Carney appeared to open the door to at least more talks this afternoon. What he said the president wouldn't do is to pay ransom in exchange for reopening the government.
But both sides are sort of dialing down the hostage-taking rhetoric tonight. The president - the White House staff talked about this being a good meeting and the GOP characterized it as a constructive dialogue.
BLOCK: And we should mention briefly, Scott, that there were warnings from the president's Treasury secretary on the Hill this morning about the ramifications of government default.
HORSLEY: That's right. There had been some on Capitol Hill who said, you know, a default might not be the worst thing. But Treasury Secretary Jack Lew tried to quash that in testimony today and said you really need to get that debt ceiling raised and don't wait until the last minute.
BLOCK: OK. NPR's Scott Horsley. Scott, thanks.
HORSLEY: My pleasure. Transcript provided by NPR, Copyright NPR.
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