The Senate blocked a Democratic plan to push the next fight over raising the debt limit until 2015 as lawmakers struggled to find a path to prevent a U.S. default and end the 12-day government shutdown.
Janet Yellen’s nomination as chairman of the U.S. Federal Reserve probably will face little resistance in the Senate, a contrast to Lawrence Summers, whose candidacy sparked a rebellion among Democratic lawmakers.
U.S. lawmakers began taking the first tentative steps toward a path to raising the government’s debt limit even as the rhetoric between President Barack Obama and Republican leaders grew more divisive.
President Barack Obama reiterated that he won’t negotiate with Republicans over the partial government shutdown and the U.S. debt limit as Senate Democrats began preparing for a test vote on a clean debt-ceiling bill.
The Australian dollar held it’s biggest one-day drop against the yen in a week as U.S. lawmakers remained at impasse on how to end a government shutdown and raise the debt limit, damping demand for higher-yielding assets.
The U.S. government began its first partial shutdown in 17 years, idling as many as 800,000 federal employees, closing national parks and halting some services after Congress failed to break a partisan deadlock by a midnight deadline.