US debt ceiling talks drag on

<p>Talks over the US debt ceiling have still not resulted in an agreement.</p>

Global concern over the US government shutdown is rising as the deadline for raising the debt ceiling – which is tomorrow (October 17th) – nears.

The International Monetary Fund and US president Barack Obama have both warned of the potential impact of failing to reach a deal in recent days, but the latest talks were unsuccessful.

Talks in the House of Representatives failed last night, leaving it up to the Senate to push through a new budget in the next 24 hours.

Mr Obama told a local ABC broadcaster that he believes an agreement will be reached ahead of the debt ceiling deadline, but he added: "I think the House Republicans still believe they can get concessions for doing their job."

Democratic Senator Barbara Mikulski added her voice to those warning of the impact of failing to reach a new budget deal.

She said the US was "hours away from becoming a deadbeat nation, not paying its bills to its own people and other creditors".

Mr Obama previously tweeted about his frustration over dealing with Republicans over the debt ceiling issue.

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