Negotiations on US debt ceiling resume after suspension

US President Joe Biden and the Republican Party have resumed their talks on the government debt ceiling after a temporary suspension on Friday.

Biden's Democratic administration wants to raise the limit on the amount of funds that the United States can borrow. Republicans say they will sign off on that only if Democrats agree to make large-scale spending cuts.

Officials from both sides continued talks during Biden's visit to Japan for the Group of Seven summit in Hiroshima.

But a Republican lawmaker in charge of the negotiations told reporters on Friday that they decided to suspend the talks because they were not productive.

Media reports have quoted a White House official as saying that there is a large gap between the two sides.

Democrats and Republicans resumed discussions later on Friday, but the suspension of talks earlier that day highlighted that they remain at odds.

The US could see the first-ever default on its government bonds as early as next month if the two sides fail to reach an agreement. That possibility has stoked fears in financial markets.