Snapshot: Developments in U.S. debt talks

Reuters News
Posted: Jul 21, 2011 1:15 PM
Snapshot: Developments in U.S. debt talks

WASHINGTON (Reuters) - Here is what's happening on Thursday in negotiations to raise the U.S. government's $14.3 trillion debt limit by August 2 and avoid a U.S. credit default:

* No face-to-face meetings between President Barack Obama and congressional Democratic and Republican leaders scheduled. That could change.

* House of Representatives Speaker John Boehner at a news conference says he would not back a deficit reduction deal that allows Bush-era tax cuts for the wealthy to expire. He says it would be irresponsible for the president and Congress not to have a backup strategy ready to raise the debt ceiling.

* House Democratic leader Nancy Pelosi says she has had "constructive" meetings with Republican leaders and that any deal must be "bipartisan, balanced."

* An influential anti-tax group, Americans for Tax Reform, clarifies that it would oppose any deal that raises taxes after its founder, Grover Norquist, is quoted by the Washington Post saying that allowing Bush-era tax cuts to expire would not violate the group's anti-tax pledge, which most Republicans have signed.

* Republicans in the House of Representatives come under growing pressure to compromise on a deal to raise the debt ceiling.

* The powerful U.S. Chamber of Commerce says Congress should not jeopardize the United States' credit rating by refusing the compromise on a deficit reduction deal to raise the debt limit.

* Senate Democratic leader Harry Reid blasts House Republicans for taking the weekend off while the country faces default in less than two weeks. The Senate is staying in session to vote on a House-passed Republican plan to "cut, cap and balance" the budget. It faces certain defeat.

(Reporting by Donna Smith; Editing by Eric Beech)