White House officials and Republican leaders scrambled yesterday to reassure global markets the United States would avert a debt default, but the two sides gave no sign they were moving closer to a deal.
White House Chief of Staff Bill Daley warned that there would be a “few stressful days” ahead for financial markets, with the deadline to lift the $14.3 trillion U.S. borrowing limit — now only nine days away.
Daley, appearing on the CBS television program “Face the Nation,” quickly added: “In the end, there’s no question in my mind the government of America will not default.”
But the path forward toward a deal was murky.
With Asian markets set to open in a few hours, Democrats and Republicans traded blame for the inability to strike an agreement. The two sides are deadlocked over Republicans demands for a short-term debt-limit increase that would force President Barack Obama to request further borrowing authority in early 2012.