US moves a step closer to debt default

The United States has moved closer to the possibility of the first-ever default on the government’s debt as Speaker John Boehner adamantly ruled out a House vote on a straightforward bill to boost the borrowing authority without concessions from President Barack Obama.

With no resolution in sight, US Treasury secretary Jack Lew yesterday warned that Congress is “playing with fire” as he called on lawmakers to quickly pass legislation reopening the government and a measure increasing the nation’s $16.7trn debt limit.