Budget Director Lew Sees Progress in Debt Talks

WASHINGTON (Reuters) - White House budget director Jack Lew told CNN Sunday "there has been activity and progress" in talks to reach a deal to raise the U.S. debt ceiling.

Lew said "quite a bit has been going on" since a meeting Thursday at the White House with President Barack Obama and Republican and Democratic congressional leaders.

No formal meetings have been held since Thursday's effort to hammer out a deal to cut the U.S. budget deficit and raise the debt ceiling before an Aug. 2 deadline when the government risks defaulting on its obligations.

Lew said he feels confident that "responsible" leaders in Congress know a default "is not an option" and will raise the debt ceiling before Aug. 2.