Obama struggles to halt default ahead of deadline

WHITE House budget director Jack Lew said yesterday there was still time to clinch a major deficit reduction deal and he was confident that congressional leaders know a US debt default is not an option.

With time running short, President Barack Obama and lawmakers were struggling for ways to lift the debt ceiling and reduce the deficit as an August 2 deadline to prevent a default draws dangerously close.

“I think it’s not insignificant that all the leaders understand it would be irresponsible to get to August 2 and not extend the ability of the United States to pay its obligations,” Lew said on CNN’s “State of the Union” programme.