'Time is running out' - Obama over US fiscal crisis

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'Time is running out' - Obama over US fiscal crisis

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Negotiations in the US Congress to end the fiscal impasse are going down to the wire with both chambers blaming each other.

The US must raise its $16 trillion debt limit by October 17 or risk default.

President Obama has said although he believes the crisis will be resolved, time is running out.

After Democrats rejected a plan by the Republican-led House of Representatives, hours later it was altered and revived – but a vote was called off.

As the House bill faltered, lawmakers in the Senate announced they were reopening talks.

The chamber’s leaders are said to be working on a plan which could extend the government’s borrowing authority until February 7 and quickly re-open federal agencies.

The Democrat-led Senate accuses the Republicans of sticking with proposals including alterations to Obama’s healthcare reforms just to appease hardline conservatives.