Debt limit talks in standstill as Republicans, White House face 'real differences'

WASHINGTON (AP) — Debt limit talks came to an abrupt standstill Friday after Republican House Speaker Kevin McCarthy said it's time to “pause” negotiations, and a White House official acknowledged there are “real differences” that are making talks difficult.

McCarthy said resolution to the standoff is “easy,” if only President Joe Biden would agree to some spending cuts Republicans are demanding. It is unclear when negotiations would resume.

“We’ve got to get movement by the White House and we don’t have any movement yet,” McCarthy, R-Calif., told reporters at the Capitol. "So, yeah, we’ve got to pause.”

A White House official who was granted anonymity Friday to discuss the private conversations said there are “real differences” between the parties on the budget issues and further “talks will be difficult.”

The official added that the president’s team is working hard towards a “reasonable bipartisan solution” that can pass both the House and the Senate.

Biden's administration is racing to strike a deal with Republicans led by McCarthy as the nation careens toward a potentially catastrophic debt default if the government fails to increase the borrowing limit, now at $31 trillion, to keep paying the nation's bills.

Wall Street turned lower as the negotiations on raising the nation’s debt limit came to a sudden halt, raising worries that the country could edge closer to risking a highly damaging default on U.S. governmen...