Talks to end shutdown, raise debt ceiling stall once again

Talks to end shutdown, raise debt ceiling stall once again

Talks on ending the government shutdown and preventing default have once again deadlocked, but this time it is Democrats who are demanding changes to current law as a condition for ending the impasse.

With the two sides now negotiating to extend government funding until at least January 31, Democrats are now insisting on spending increases — they want to end most of the cuts put in place as part of the so-called sequester. To Republicans, this is a non-starter, unless the sequester spending cuts are replaced with cuts to entitlement programs — and that is a non-starter for Democrats.

The impasse makes it more likely there will be no agreement when markets reopen Monday morning. If an agreement is not soon reached, it may be impossible to pass anything before October 17, the day the Treasury Department says the government risks default if Congress does not extend the government’s ability to borrow money.

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