The main sticking point was reportedly the rolling back of federal spending to 2022 demanded by House Republicans' right-wing Freedom Caucus, which accounts for around a fifth of the membership. 'We have a gap on many issues,' McHenry said, according to NewsNation. On Friday, Republicans' chief negotiators in the talks, congressmen Garret Graves and Patrick McHenry, abruptly left a negotiating session alongside McCarthy and have no plans to return, the Punchbowl News political website reported. The unexpected pause to the talks came just a day after McCarthy voiced optimism that he could get a bill on the floor by next week, although he indicated that an in-principle agreement would likely need to be in place by Sunday or Monday for that to happen.

Speaking in Hiroshima where Biden is attending a G7 summit, White House Press Secretary Karine Jean-Pierre acknowledged that there 'continues to be real differences' but said 'the president is confident that there is a path forward.' Rolling back spending 'There are real differences between the parties on budget issues and talks will be difficult,' a White House official said in a statement, adding: 'the President's team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate.'

On Friday, the White House said significant problems remained between the two sides over the budget. Republicans say Biden must sign up for spending cuts in exchange for their support to raise the debt ceiling, ignoring repeated Democratic calls for a 'clean' increase of the borrowing limit with no strings attached.ĭemocrats have framed the talks as an opportunity to discuss the upcoming budget ahead of June 1, when the Treasury predicts the United States could start defaulting on its debts, with dire economic consequences. US stock indexes, which had been trending higher, changed course later Friday on the news. 'We've got to pause,' Republican leader Kevin McCarthy told reporters in Congress, adding, 'we can't be spending any more money next year.'Ī default could ignite a firestorm in global markets, with investors nervously watching as the talks unfolded. Negotiators for President Joe Biden have been locked in talks with Republicans as they seek a deal to raise the US borrowing limit and allow the world's largest economy to avoid defaulting on its debt repayments.

Budget brakes