US Congress fail to reach deal as default looms

Republicans and Democrats in Congress have failed to make any significant progress towards a deal even as a threatened default by the Treasury crept uncomfortably closer and a partial US government shutdown neared the end of its second week.

US fails to reach deal as default looms. Credit: Reuters

Politicians in both parties said they were watching for the reaction to the political uncertainty by the financial markets when they reopen after the weekend.

The focus of efforts to end the government shutdown and prevent a US default shifted to the Senate on Saturday, where Senate leaders were in bipartisan talks aimed at resolving the twin stalemates.