US Republican leaders are scrambling to rescue their deficit-cutting bill hours after a vote on it stalled because of a revolt from members of their own party.
Republican whips delayed a House of Representatives vote on the plan on Thursday night after failing to quell a rank-and-file conservative revolt.
House Republicans were meeting for closed-door crisis talks on Friday.
The fiscal fiasco leaves the US inching closer to a potentially catastrophic default on federal debt next Tuesday.
The White House has warned the government will run out of money to pay all its bills unless a $14.3tn (Ã‚Â£8.7tn) borrowing limit is increased by 2 August.
The US treasury department is expected to unveil emergency plans explaining how the government would function if Congress does not agree to raise its borrowing limit.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.