Debt-Limit Talks Stall as Time Runs Short to Avert US Default

May 25, 2023

(Bloomberg) -- Debt limit talks in Washington have hit a fresh impasse with negotiators far apart on key issues, especially the spending cuts demanded by Republicans, as time runs short to avert a historic US default. House Speaker Kevin McCarthy said he had spoken to White House negotiators early Wednesday and that discussions would continue. Spending cuts required to get the Republican side to “yes” on a deal could cost as much as 570,000 jobs, our model shows. Hakeem Jeffries, the House Democratic leader, told reporters that a freeze at 2023 spending levels would be a “reasonable” compromise. (Updates with comments from Yellen and GOP negotiator beginning with second paragraph)Most Read from Bloomberg Businessweek©2023 Bloomberg L.P.