President Obama has rejected raising America’s debt ceiling for 6 weeks beyond the October 17 deadline. The compromise was put forward by congressional Republicans, who sought to win time for negotiation and avert an unprecedented US default next week. No specific budget decision was taken in the White House on Thursday, where President Obama met with 20 House Republicans, including Speaker... 

The US Treasury has warned of catastrophic effects if a political stalemate over raising the government’s debt limit forces a US default on its obligations. The federal government is expected to exhaust its cash reserves by October 17 and if US lawmakers do not reach an agreement to raise the nation’s debt ceiling, the government will not be able to pay its bills and will default on its legal... 

The House voted on legislation Wednesday that will raise the debt ceiling for three months and delay a US default. Even though this is just a short term fix, the Obama administration said it supports it. The legislation prevented a devastating default of US debt and payments next month and instead give Congress three more months to come up with an agreement on the budget, taxes, spending and the deficit....