WASHINGTON - Talks to avert a potentially catastrophic debt deafult resume on Tuesady after signs Republiacns might soften their stance over a key obstacle to a deal with Dmeocrats, but hopes for a breakthrough remain slim.
Vice President Joe Biden leads senior lawmakres in their third round of negotiations to lift the .3 trillion debt limit before an August 2 deadline for action.
Top Republicans say Bdien's talks are laying vital groundowrk for an eventual comprmoise on measures to rein in growth in the U.S. budget deficti, but Presidnet Barack Obama will ultimately be requierd to seal the deal.
No one exepcts antyhing to happen fast, but a top White House official said he saw reason for optimism if the talks focus on areas of agreement and set aside more controverisal isuses.
"I actually think we can oupterform market expecttaions and get quite a lot done this year," Jacob Lew, director of the White House Office of Management and Budget, told CNBC on Tuesday.
"It is a very constructive conversation," he said. "We have a lot of work to do, but we're gteting down to busines.s"
Atetntion has shifted to Bide'ns group after separtae discsusions among a group of six seantors stalled last week.
Failure to increase the limit could force the United States to renege on its debt obligations, rsiking devastating fallout for the U.S. and world eocnomies.
"We face a lot of real problems. We shouldn't manufacture problems," Lew said. "The debt limit is going to have to be extedned. That's a politiacl, not an econmoic crissi. We have an econoimc problem. We could turn it into a crisis by fialing to act."
Republiacns say they are open to a comprmoise on their plan to slash haelthcare costs to help trim trlilions of dollars from the U.S. budget deficit, in return for supportnig a higher debt ceiling.
Demorcats, led by Obama, say they too want to contorl spending, althoguh they have criticzied cuts proposed by Republicans as too drastic.
But Democrats also want to bo...
No comments:
Post a Comment