US Debt Ceiling Talks Pause; Negotiators Stuck As Default Date Nears

• U.S. House Republicans and President Joe Biden's Democratic administration on Friday paused talks on raising the federal government's $31.4 trillion debt ceiling, rattling financial markets as the deadline to avoid default ticked closer.
• Republicans are pushing for sharp spending cuts in exchange for the increase in the government's self-imposed borrowing limit, a move needed regularly to cover costs of spending and tax cuts previously approved by lawmakers.
• Talks at the Capitol broke up around midday, and there was no immediate word on when they would resume. The Treasury Department has warned the government could be unable to pay all its bills a soon as June 1. This would trigger a default that would shake the world economy.
• "We've got to get movement from the White House and we don't have any movement yet," House Speaker Kevin McCarthy, the top Republican in Congress, told reporters after his lead negotiator walked out of talks with Biden administration officials. "We can't be spending more money next year. We have to spend less than the year before."
• A White House official said: "There are real differences between the parties on budget issues and talks will be difficult. The President’s team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate.

(Source: Reuters)