U.s. Debt Limit | featured news

The debt deal impasse doesn't just threaten the U.S. credit rating. President Obama's political standing also appears at risk.

Rival Democratic and Republican plans to raise the government's borrowing ability have thrust Congress into a standoff just one week away from a potentially devastating debt crisis.

The Federal Aviation Administration was forced into a partial shutdown Monday after Congress failed to temporarily extend its funding. The agency was ordered to furlough thousands of employees and freeze $2.5 billion in airport construction money.

The International Monetary Fund call on US politicians to agree a "comprehensive solution" to raise the debt ceiling.

Scolded by President Barack Obama, Congress scrambled on Saturday to produce a deficit plan within 48 hours that keeps the United States from a catastrophic debt default now days away.

House of Representatives Speaker John Boehner broke off talks with President Barack Obama on Friday and said he will begin negotiations with Senate leaders aimed at meeting an August 2 deadline to avert an unprecedented U.S. debt default.

The Senate on Friday voted along party lines against the proposal to cut spending and raise the debt limit. President Obama pressed for compromise during a town hall meeting.

The government will lose about $200 million a week in airline ticket taxes if the Federal Aviation Administration is forced to shut down.

Standard & Poor's reiterated on Thursday it sees a real risk that future U.S. government deficits may meaningfully miss discussed targets and that there is a 50-50 chance the U.S. AAA credit rating could be cut within three months, perhaps as soon as August.

The White House signaled on Wednesday it could support a short-term increase in the U.S. borrowing limit for "a few days" if lawmakers agreed to a broad deficit reduction deal but needed more time to pass it.