President Biden rejects GOP demands for spending cuts

U.S. President Joe Biden has rejected Republicans' demands for spending cuts in negotiations to avoid a U.S. debt default as "unacceptable."  Biden said he would talk directly with Republican House Speaker Kevin McCarthy.

The Treasury Department is warning that the U.S. risks defaulting on its debts after the first of June unless it can raise its borrowing limits. Biden says he is willing to cut spending to clinch a deal and vowed to avoid a default. The debt ceiling raise is usually an uncontroversial annual procedure but this year the increasingly hard-right Republican Party has turned the threat of default into a powerful lever to try and force Biden to accept spending cuts.