Senate leaders took command of efforts to avert a US Treasury default and end the partial government shutdown last night after a last big effort by Republicans abruptly collapsed.

The head of the IMF Christine Lagarde has warned American political leaders to get their house in order or the world will suffer the consequences.

The White House has said no decision has been made on budget provisions after discussions with senior Republicans.

US secretary of state John Kerry has urged Congress to end the partial government shutdown and think “long and hard” about the message the US sends the world when “we can’t get our own act together”.

Much of the vast machinery of the US government has ground to a halt as Democrats and Republicans blamed each other for a partial shutdown that closed federal agencies, national parks and research facilities across the nation.