Obama eyes more deficit talks with no deal in sight

President Barack Obama will decide on Saturday whether to summon lawmakers for a new round of debt and deficit talks, weighing the chances of progress as both sides stick to their positions on spending and taxes.

Congress must raise the $14.3 trillion limit on US borrowing by August 2 or the government will run out of money to pay its bills, causing turmoil in global financial markets and potentially forcing the United States into another recession.

Congressional leaders met with fellow lawmakers on Friday to gauge support for a deal, but movement appeared limited.

Republicans want a deficit-cutting deal in order to raise the debt limit, but they disagree with Democrats on how to do it. The White House wants some tax increases on wealthy Americans to be part of a package; Republicans reject that.

“The truth is, you can’t solve our deficit without cutting spending,” Obama said.