Hillary Clinton 'confident' over US debt deal
Baku, July 25 (AZERTAC). US Secretary of State Hillary Clinton has said she is "confident" the president and Congress will reach a deal to raise the US debt ceiling.
Global markets were down on Monday amid concerns about a lack of a deal as the 2 August deadline looms.
President Obama dropped two fundraising events in Washington on Monday to focus on the debt issue, US media said.
The US risks default on its $14.3tn (£8.7tn) debt without a deal to raise the borrowing limit.
If the ceiling is not raised, the US Treasury could run out of money to pay all of its bills - which could lead to interest rate rises, threaten the US economic recovery and in turn the global recovery.
"Let me assure you we understand the stakes. We know how important this is for us and how important it is for you," Mrs Clinton told Hong Kong business leaders.
"I`m confident Congress will do the right thing and secure a deal on the debt ceiling," she said.
With investors becoming increasingly nervous about the political stand-off in Washington, Tokyo`s Nikkei average closed down on Monday by 0.8%, while the STOXX Europe 600 Banks index was down 1.9%.
The US benchmark Dow Jones index fell by 0.68% during the first half-hour of trading on Monday, while the broader S&P 500 fell 0.63%.
The federal government is running a large budget deficit - equal to $1.3tn, or more than $4,000 per person, during the 12 months to June this year.
The borrowing is required to meet the government`s agreed spending plans and because its ability to raise taxes is limited under current laws.
But the government must also comply with a law that limits the total amount of debt it can take on - the debt ceiling.
President Obama wants the debt reduction deal to include a combination of spending cuts and tax rises, but Republicans in both houses of Congress are strongly opposed to the latter.
Mr Obama was joined at the negotiating table on Saturday by Vice-President Joe Biden, Republican House Speaker John Boehner, Democratic House Minority leader Nancy Pelosi, Democratic Senate Majority leader Harry Reid and Senate Republican leader Mitch McConnell.
Following the meeting, the White House urged Congress to "refrain from playing reckless political games with our economy... and do its job, avoiding default and cutting the deficit".
Both Mr McConnell and Mr Boehner issued statements saying they intended "to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States".
Aides said they expected to work through the weekend to come up with a bill that would be acceptable to both sides for Monday.
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