This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-us-canada-24543581

The article has changed 14 times. There is an RSS feed of changes available.

Version 4 Version 5
Debt ceiling: Fitch puts US credit rating under review Debt ceiling: Fitch puts US credit rating under review
(about 1 hour later)
Ratings agency Fitch has put the US AAA credit rating under review for a downgrade as the deadline to raise the US borrowing limit draws closer.Ratings agency Fitch has put the US AAA credit rating under review for a downgrade as the deadline to raise the US borrowing limit draws closer.
The move comes after Democrats rejected a plan by the Republican-led House of Representatives as an attempt to appease a small group of conservatives.The move comes after Democrats rejected a plan by the Republican-led House of Representatives as an attempt to appease a small group of conservatives.
Hours later, House Republicans revised their proposal and planned to put it to a vote, but even that was called off.Hours later, House Republicans revised their proposal and planned to put it to a vote, but even that was called off.
The US must raise its $16.7tn (£10.5tn) debt limit by Thursday or risk default.The US must raise its $16.7tn (£10.5tn) debt limit by Thursday or risk default.
"The [Fitch] announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy," a US Treasury spokesperson said. "The [Fitch] announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy," said US Treasury spokeswoman Brandi Hoffine.
As the House bill faltered, Democratic and Republican leaders in the Senate announced on Tuesday evening that they were reopening talks.
Republican retreatRepublican retreat
While Fitch said it expected the debt limit to be raised soon, it added that "political brinkmanship" and "reduced financing flexibility could increase the risk of a US default".While Fitch said it expected the debt limit to be raised soon, it added that "political brinkmanship" and "reduced financing flexibility could increase the risk of a US default".
During a previous fiscal standoff on Capitol Hill in 2011, another credit rating agency, Standard & Poor's, downgraded the US rating from AAA to AA+.During a previous fiscal standoff on Capitol Hill in 2011, another credit rating agency, Standard & Poor's, downgraded the US rating from AAA to AA+.
The New York Stock Exchange plunged 133 points.The New York Stock Exchange plunged 133 points.
The latest budget battle began 15 days ago when conservative House Republicans brought about a partial government shutdown by demanding that President Barack Obama defund or delay his signature healthcare overhaul.The latest budget battle began 15 days ago when conservative House Republicans brought about a partial government shutdown by demanding that President Barack Obama defund or delay his signature healthcare overhaul.
The party subsequently retreated from that idea and by Tuesday morning House Republicans were seeking relatively minor changes to the 2010 Affordable Care Act.The party subsequently retreated from that idea and by Tuesday morning House Republicans were seeking relatively minor changes to the 2010 Affordable Care Act.
But following swift condemnation from the White House and Democrats, they amended their plan later in the day to strip it of even those proposals.But following swift condemnation from the White House and Democrats, they amended their plan later in the day to strip it of even those proposals.
Gone from the latest Republican proposal were two provisions that would have delayed two taxes that help fund the law commonly known as Obamacare.Gone from the latest Republican proposal were two provisions that would have delayed two taxes that help fund the law commonly known as Obamacare.
The new House plan would reopen the government until 15 December and raise the debt ceiling through to 7 February.The new House plan would reopen the government until 15 December and raise the debt ceiling through to 7 February.
The House of Representatives said it was planning to hold a vote on Tuesday on its proposal.
'A bad deal''A bad deal'
But a rules committee postponed a hearing that would allow the bill to reach the floor of the chamber.But a rules committee postponed a hearing that would allow the bill to reach the floor of the chamber.
It is not clear if the plan has enough votes among rank-and-file conservatives to pass in the lower chamber.It is not clear if the plan has enough votes among rank-and-file conservatives to pass in the lower chamber.
Among those resisting was Republican Representative Joe Barton, who told the Associated Press on Tuesday any plan to end the crisis must contain deep spending cuts to win his vote.Among those resisting was Republican Representative Joe Barton, who told the Associated Press on Tuesday any plan to end the crisis must contain deep spending cuts to win his vote.
"No deal is better than a bad deal," Mr Barton said."No deal is better than a bad deal," Mr Barton said.
And differences with an emerging bipartisan Senate plan could complicate prospects for final passage before 17 October, when the US Treasury says the government will run out of money to pay its bills.And differences with an emerging bipartisan Senate plan could complicate prospects for final passage before 17 October, when the US Treasury says the government will run out of money to pay its bills.
On Tuesday afternoon, Mr Obama told a local ABC broadcaster he expected the debt ceiling impasse to eventually be resolved.
"But we don't have a lot of time," he added.
'We have lost''We have lost'
On Tuesday afternoon, Mr Obama told a local ABC broadcaster he expected the debt ceiling impasse to eventually be resolved.
But he added: "I think the House Republicans still believe they can get concessions for doing their job."
The White House has refused to negotiate over the health law, pointing out that it passed in 2010, was subsequently validated by the Supreme Court, and was a central issue in the 2012 presidential election, which Mr Obama won handily.The White House has refused to negotiate over the health law, pointing out that it passed in 2010, was subsequently validated by the Supreme Court, and was a central issue in the 2012 presidential election, which Mr Obama won handily.
Republican Senator John McCain, who was the party's 2008 presidential nominee, was quoted by the New York Times as saying: "Republicans have to understand we have lost this battle.Republican Senator John McCain, who was the party's 2008 presidential nominee, was quoted by the New York Times as saying: "Republicans have to understand we have lost this battle.
"As I predicted weeks ago, that we would not be able to win because we were demanding something that was not achievable.""As I predicted weeks ago, that we would not be able to win because we were demanding something that was not achievable."
Political analysts say the fallout from the affair could damage Republican prospects in next year's midterm elections. Republicans have taken a hammering in opinion polls amid the fiscal standoff, and some in the party are concerned it could damage their prospects in next year's midterm elections.
A Washington Post/ABC News survey on Monday found 74% of voters were unhappy with congressional Republicans' handling of the standoff, compared with a 53% disapproval rating for President Obama.
The US Treasury has been using what are known as "extraordinary measures" to pay its bills since the nation reached its current debt limit in May.
Meanwhile, the government remains partially shut down because Congress failed to agree on funding by a 1 October deadline.
The impasse has closed a swathe of federal services and left hundreds of thousands of employees out of work.