The stakes have risen dramatically in the last 48 hours after long-running talks between President Obama and John Boehner, the top Republican in Congress, collapsed in acrimony after the parties failed to agree on a package of spending cuts and tax rises that would help to pay for such a move.
"It's very important that the leadership (in Congress) understands that Wall Street will be opening on Monday, and we'd better have some answers," President Obama warned on Saturday.
The prospect of a deficit deal that preserves America's prized 'AAA' rating is also receding. Ratings agency Standard & Poor's has warned that unless a deal convinces it that politicians are serious about cutting the deficit, then the US risks a downgrade for the first time in its history.
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