But the negotiations are still far from a success, McCarthy notes after he and a group of other top politicians deliberated with Biden in the Oval Office at the White House.
Even Joe Biden spoke out, declaring that he was "optimistic" after Tuesday's talks.
Appoints special negotiators
Biden is cutting short his planned Asia trip this week due to debt ceiling negotiations. The US president will travel to Japan on Wednesday to attend the G7 summit – but then return home to the US.
The intention was that after the G7 meeting in Hiroshima, Biden would go on to Papua New Guinea and Australia.
"He's very disappointed with the actions of some members of Congress," Australian Prime Minister Anthony Albanese told ABC News after a phone call with Biden.
The visit would be the first visit by a U.S. president to the country in nearly a decade.
According to several media outlets, Biden has decided to appoint ministers in his administration to conduct the direct negotiations with Republicans on the debt ceiling.
The reason is that the US risks entering a fiscal crisis unless the country's debt ceiling is raised and negotiations on the issue with the Republicans enter a new critical phase in the coming days.
'Catastrophic consequences'
Vice President Kamala Harris and Senate Democratic leader Chuck Schumer, as well as Republican Senate leader Mitch McConnell, also attended the brief meeting that began in the Oval Office.
The meeting is the second in the order and last time McCarthy was much more pessimistic.
The U.S. Treasury Department has warned of "catastrophic" consequences if the U.S. were unable to pay its bills, which would, among other things, make the country unable to pay salaries to public employees and likely trigger a rise in interest rates — which would also shake up financial markets worldwide.