The world`s largest economy once more faces the threat of default unless the US Congress raises the debt ceiling, but feuding between Barack Obama and foes may not push the nation to the brink this time.
A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington`s resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained "unchanged".
A few faint glimmers of hope surfaced on Monday in the US fiscal standoff, both in Congress and at the White House, with President Barack Obama saying he would accept a short-term increase in the nation's borrowing authority to avoid a default.
India must have a "contingency plan" in place to ring-fence the country's economy if the political showdown in the US leads to a default on its international monetary obligations, industry body Assocham on Thursday said.
Top Republicans and Democrats worked behind the scenes on Wednesday on a compromise to avert a crippling US default, looking to salvage a last-minute deal from rival debt plans that have little chance of winning congressional approval on their own.
A default or significant credit downgrade in the United States would be a "very very serious event," IMF chief Christine Lagarde said on Tuesday, warning it could have far-reaching consequences for the world.
Standard & Poor's reiterated on Thursday it sees a real risk that future US government deficits may meaningfully miss discussed targets and that there is a 50-50 chance the US AAA credit rating could be cut within three months, perhaps as soon as August.
Asian stocks rose and the euro climbed to a two-week high on Friday after European leaders agreed on a package to rescue debt-stricken Greece and gains will be sustained if US policymakers also manage to cobble together a last minute deal.
Efforts to craft a broad USD 3 trillion deficit-reduction deal gained traction on Thursday as the White House and top lawmakers scrambled to sort through competing options and stave off a devastating US default.