Boehner preparing to move on debt limit

By ALAN FRAM | July 25, 2011 | 3:14 AM EDT

Money traders work under a screen flashing the U.S. dollar against the Japanese yen at a foreign exchange market in Tokyo, Monday, July 25, 2011. Markets around the world were watching nervously as congressional Democrats and Republicans struggled through another day of difficult talks but failed to agree on cutting U.S. spending and raising the debt limit, a necessary measure to prevent an unprecedented Aug. 2 default. (AP Photo/Shizuo Kambayashi)

WASHINGTON (AP) — Congressional leaders are still struggling for a compromise debt limit deal that avoids a market-rattling default in eight days while cutting trillions in spending.

House Speaker John Boehner of Ohio plans to meet with his chamber's Republicans on Monday to discuss the GOP's clash with President Barack Obama over extending the government's borrowing authority. Boehner could unveil debt ceiling legislation by that session.

Senate Majority Leader Harry Reid of Nevada met at the White House on Sunday with Obama and House Democratic Leader Nancy Pelosi of California. Afterward Reid said bipartisan talks collapsed because Republicans insist on a short extension for the debt limit. He says he is crafting a $2.7 trillion package of spending cuts that would also push the government's borrowing authority through next year.