US debt ceiling talks hampered by 'serious differences'

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White House and Republican negotiators have resumed US debt ceiling talks after a brief pause on Friday that rattled financial markets.

House of Representatives Speaker Kevin McCarthy said negotiations at the Capitol were back on, but the White House warned of "serious differences".

Republicans had suspended talks hours earlier, accusing the White House of "unreasonable" requests.

Without a deal, the US could default on its $31.4tn (£25.2tn) debt.

That would mean the government could not borrow any more money or pay all of its bills.

The Treasury Department has warned that a default could begin on 1 June.

 

Speaker McCarthy told Fox Business on Friday evening: "We'll be back in the room tonight.

"But it's very frustrating if they want to come into the room and think we're going to spend more money next year than we did this year. That's not right, and that's not going to happen."