Business, Economics and Jobs

No new debt deal after war of words between President Obama and House Speaker Boehner

After the Speaker of the House walked out of talks Friday, and Obama angrily called for another meeting Saturday, debt talks remain at a stalemate between Democrats and Republicans.

President Obama and congressional leaders met at the White House again Saturday morning to discuss how the U.S. could avoid defaulting on loans in 10 days, following a breakdown in talks on the "grand bargain" to raise the debt limit, cut spending and raise government revenue, CBS news reported Saturday.

But there was no new deal following the hour-long meeting, according to the White House. In a statement released about the meeting, Obama, restated his opposition to a short-term deal, saying such a move could, "cause our country's credit rating to be downgraded, causing harm to our economy and causing every American to pay higher credit card rates and more for home and car loans." Speaker Boehner and other Republicans have said they would accept a six-month increase in the debt ceiling, according to VoA.

On Friday evening, Boehner walked away from the talks, triggering a string of press conferences and finger pointing.

"It's hard to understand why Speaker Boehner would walk away from this kind of deal and frankly, if you look at the commentary out there, there are a lot of Republicans that are puzzled as to why it couldn't get done," Obama said at a press conference last night.

Later, Boehner suggested there had been an agreement to increase revenues $800 billion through tax reform, but that Obama "moved the goalposts", adding an additional $400 billion.

The U.S. has ten days to raise its $14.3 trillion debt ceiling, to allow the government to continue borrowing money to meet its obligations, according to VoA.

Republicans refuse to raise the debt ceiling without a significant reduction in budget cuts alone, while Democrats insist on increasing tax revenue, which Republicans reject.