US default looms closer as shutdown continues

The United States moved closer to a default that could seriously harm the economy and a partial government shutdown entered its third week as Senate Democratic and Republican leaders remained at odds over spending in their last-ditch negotiations to end the crises gripping the nation.

Democratic Majority Leader Harry Reid and Republican Minority Leader Mitch McConnell spoke by phone on Sunday but failed to agree on a deal to raise the nation’s borrowing authority above the US $16.7 trillion debt limit.