President Barack Obama has said he expects to have a deal in place to prevent the US government from defaulting on its debts before the August 2 deadline – but admitted it will be “a lot of work”.
Obama held a news conference on Monday to try to push the blame onto his political opponents the Republican leadership in Congress.
He told reporters: “The good news is that all the leaders continue to believe, rightly, that it is not acceptable for us not to raise the debt ceiling and to allow the US government to default.
Talks continue with the president all but accusing the Republicans of refusing to compromise over taxes and the future of retirement pensions and government programmes to help the poor and the elderly.
Obama said if an agreement can be reached to reduce the deficit to manageable levels the US economy would start to grow again creating jobs and wealth – with no deal he fears it will fall back into recession.