US President Barack Obama said extending emergency unemployment insurance will give a “vital economic lifeline” to millions of people still grappling with the aftermath of the worst recession since the 1930s.

The Republican-controlled House and Democratic-run Senate remained deadlocked today over debt legislation required to avoid a first-ever default on US financial obligations.

American politicians have approved a bill to slap punishing taxes on big employee bonuses from firms bailed out by taxpayers.