LONDON/TOKYO (Reuters) – British and Japanese officials warned on Sunday of disastrous consequences for the global economy if last-minute talks among lawmakers in Washington failed to agree on raising the U.S. borrowing limit and averting a debt default.
Governments across the world fear that because of the key role of the U.S. dollar in global banking and trading systems, there could be severe instability when Asian financial markets reopen on Monday if a U.S. debt deal is not in sight by then.
In Washington, Senate Minority Leader Mitch McConnell, the top Senate Republican who is playing a key role in the debt talks, said “we’re very close” to a $3 trillion deal that would raise the debt ceiling while cutting the U.S. budget deficit.
But a senior White House official warned that an agreement was “not there yet.”
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