–Vice President Leaves Capitol After More Than 3-Hour Meeting
–Rep. Cantor: ‘Very Straightforward Talk’ In Budget Negotiations
–Sen. Baucus: ‘There Will Be An Agreement'; Not Sure When

By John Shaw

WASHINGTON (MNI) – Vice President Joe Biden left the Capitol
Wednesday evening after more than three hours of budget negotiations,
saying little beyond his group’s plans to meet again Thursday and
probably Friday.

“We’re still moving,” Biden said to reporters as he left the
Capitol.

House Majority Leader Eric Cantor said Wednesday’s session involved
“some very straightforward talk and really outlining of where each side
needed to be to get there.”

Cantor said the fact that future talks are scheduled indicates
progress is being made.

“If we weren’t (making progress) we wouldn’t be meeting again,”
Cantor said.

Senate Finance Committee Chairman Max Baucus said the talks are
progressing and offered a mostly upbeat assessment.

“There will be an agreement,” he said, but then added “I can’t say
when.”

The Biden group has met Tuesday and today and will meet Thursday
and possibly Friday.

The Biden talks are seeking a deficit reduction package that can
be developed to coincide with this summer’s vote on debt ceiling
legislation.

The talks are focused on assembling a package of spending cuts that
would allow for Congress to consider a debt ceiling increase
sufficiently large to extend until after the 2012 November elections.
Various lawmakers and administration officials have put this number at
$2.4 trillion — for both the size of the debt ceiling increase and the
accompanying spending cuts.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Tim Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2.

Biden is negotiating with Cantor, Senate Minority Whip Jon Kyl,
Senate Appropriations Committee Chairman Dan Inouye, Baucus, Assistant
House Minority Leader Jim Clyburn and Van Hollen, the top Democrat on
the House Budget Committee.

The administration is represented by Biden, Treasury Secretary Tim
Geithner, White House budget director Jack Lew and the director of the
National Economic Council Gene Sperling.

** Market News International Washington Bureau: (202) 371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]