Senate Budget Committee chair Senator Patty Murray holds up a copy of a federal employees' Worker Adjustment and Retraining Notification (WARN) at a news conference on Capitol Hill in Washington February 28, 2013. Positions hardened on Wednesday between the U.S. President and Republican congressional leaders over the budget crisis even as they arranged to hold last-ditch talks to prevent harsh automatic spending cuts beginning this week. Looking resigned to the $85 billion in "sequestration" cuts starting on Friday, government agencies began reducing costs and spelling out to employees how furloughs will work. Senate Majority Leader Harry Reid (D-NV) is seen on left. REUTERS/Larry Downing (UNITED STATES - Tags: POLITICS BUSINESS EMPLOYMENT)