Obama considers new round of US debt, deficit talks

President Barack Obama will decide on Saturday whether to summon lawmakers for a new round of debt and deficit talks, weighing the chances of progress as both sides stick to their positions on spending and taxes.

President Barack Obama, who has spelt out the consequences of a US default, is looking for way to break an impasse with Congress.

Reuters

Congress must raise the $14.3 trillion (£8.8 trillion) limit on US borrowing by August 2 or the government will run out of money to pay its bills, causing turmoil in global financial markets and potentially forcing the United States into another recession.

Congressional leaders met with fellow lawmakers on Friday to gauge support for a deal, but movement appeared limited.

Republicans want a deficit-cutting deal in order to raise the debt limit, but they disagree with Democrats on how to do it. The White House wants some tax increases on wealthy Americans to be part of a package; Republicans reject that.

On Friday, Mr Obama, a Democrat, called for Republicans to provide a "serious plan". John Boehner, the Republican speaker of the House of Representatives, said the White House had no serious plan of its own.

As the two sides bicker, the consequences of not reaching a deal are looming.