STORY: The two parties remain deeply divided about how to rein in the federal deficit, with Democrats arguing wealthy Americans and businesses should pay more taxes while Republicans want spending cuts.
White House negotiators Shalanda Young, director of the Office of Management and Budget, and senior White House adviser Steve Ricchetti, met with their Republican counterparts for about two hours. They left without making substantive comments to media.
McCarthy told reporters "we're not there yet", but vowed that "We're going to work until we get it all done."
Treasury Secretary Janet Yellen has warned that the federal government could no longer have enough money to pay all its bills as soon as June 1, while the two sides still disagree on spending and it was not clear when talks would resume.