After months of vitriolic discord, Republican and Democratic lawmakers were expected to vote on Monday on a White House-backed deal to raise the U.S. borrowing limit and avert an unprecedented default.
Chinese state media criticised the brinkmanship in Washington over how to raise the debt limit as "dangerously irresponsible" and said the US could plunge the world into a recession that could be "much nastier" than the one that hit in 2008.
Republican leaders in the House of Representatives on Thursday abandoned efforts to vote on a plan to raise the nation's borrowing authority, deepening the US debt ceiling crisis five days ahead of a possible default.
Cyprus moved closer to becoming the fourth eurozone country to need a bail-out after Moody's downgraded its bonds to just two notches above junk, arguing that political turmoil on the island and its exposure to Greek debt raised questions about its ability to service its own debt.
Elizabeth Warren to leave consumer financial agency
Elizabeth Warren, the law professor who persuaded the Obama administration to create the Consumer Financial Protection Bureau, will step down on August 1 from her role setting up the controversial new regulator, the Treasury said on Tuesday.