President Barack Obama warned on Tuesday that elderly Americans could suffer first from a debt default, raising pressure on lawmakers as prospects for a deal to lift the debt ceiling appeared far from reach.
The president and congressional leaders met at the White House for the third time in as many days, working to break a logjam over taxes and spending cuts before August 2. when the US treasury says it will run out of money to pay all of the country's bills.
Little progress was made and another meeting was expected on Wednesday.
Republicans have balked at raising the debt limit without a deficit-cutting deal, but their leader in the Senate, Mitch McConnell, proposed a backup plan that would allow Obama and his Democrats to do just that, allowing Republicans to duck what would be a painful vote.
McConnell said a "real solution" to the US debt problem was unlikely while Obama was in office. The president, in an interview with television network CBS, chalked up the comments to "partisan politics."
As politicians sparred, US business leaders pressed Washington to act swiftly to raise the USD 14.3 trillion US debt ceiling or risk derailing a sputtering economic recovery and endangering the global financial system.
Obama told CBS that checks to recipients of the Social Security retirement program may not go out in early August if he and congressional leaders do not hammer out an agreement.
"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue," Obama said, according to excerpts of the interview released before its broadcast.
"There may simply not be the money in the coffers to do it," Obama said. He said veterans checks and disability benefits could also be affected without a deal.
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