US Senators struggle to end deadlock as default looms

October 13
9:45 PM 2013

US Senators had been struggling to reach an agreement to end the partial deadlock of the government. This was after the US shutdown entered its 13th day, said a report from Reuters. On October 17, the US would lapse its debt if it fails to come up with an agreement to settle budget issues that would end the US shutdown.

Senate Majority Leader Harry Reid had been in discussions with Minority Leader Mitch McConnell yesterday. Reid said that they had a "productive discussion", reported Reuters.

According to Reid, "The discussions were substantive, and we'll continue those discussions. I'm optimistic about the prospects for a positive conclusion."

Democrats had warned yesterday that a lack of movement this weekend might have great impact on the nation's financial markets. This was amid concern that the political standoff in the world's largest economy would not be broken. The dollar had dropped to 0.5% to JPY98.10 as of 7:06 a.m. in Sydney. This was its first decline in five days.

According to IMF Managing Director Christine Legarde, the congressional deadlock over the US debt cap would threaten not only the United States but world economies as well. She cautioned against creative accounting to keep away from default, said a report from Reuters.

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