WASHINGTON, July 22 Here is what's happening on
Friday in negotiations to raise the U.S. government's $14.3
trillion debt limit by Aug. 2 and avoid a credit default:
* U.S. House Speaker John Boehner walks away from talks
with President Barack Obama on a deficit reduction deal that
was to clear the way for an increase in the debt limit. Boehner
says Obama wanted to raise taxes. Boehner says he will now
begin talks with U.S. Senate leaders.
* U.S. Senate Democratic Leader Harry Reid says U.S.
default must be averted "at all costs." Says bipartisan talks
should focus on an agreement that at least accomplishes that
goal. But he also says he wants a long-term plan enacted.
* Obama says it "hard to understand" why Boehner would walk
away from what he called an "extraordinarily fair" deal. Obama
says deal would have cut $1 trillion in discretionary spending
and $650 billion from Medicare, Medicaid and other
entitlements. Deal would have sought $1.2 trillion in revenues,
which could have been achieved with raising income tax rates.
* Obama says he wants Boehner, Reid, Senate Republican
Leader Mitch McConnell and House Democratic Leader Nancy Pelosi
at a White House meeting on Saturday.
* Senior Democrats say they were frustrated at being left
out of closed-door negotiations between Obama and Boehner. They
were worried a deal would include big spending cuts and leave
revenues to be worked out later.
* Treasury Secretary Timothy Geithner meets with Federal
Reserve Chairman Ben Bernanke and New York Fed President
William Dudley to talk about the implications for the U.S.
economy if Congress failed to raise the debt.
* Lawmakers need to have a deal in place by Monday in order
to ensure it can pass by Aug. 2, a senior Republican aide
(Reporting by Donna Smith and Andy Sullivan)