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US debt ceiling is reached as a partisan impasse causes economic concerns

The US has hit its statutory debt ceiling, bringing about a potential fiscal crisis as the government risks running out of money to pay its bills. The move, which comes as a result of a partisan standoff between the White House and Congress, has sparked concerns that the US economy could suffer if the government is unable to make payments on its debt. President Barack Obama has called on Congress to raise the debt limit in order to avoid a default, warning that it would have “catastrophic” consequences for the US and global economies.

However, Republicans have refused to act without concessions from the president, including spending cuts and other fiscal reforms. The Treasury Department is currently taking “extraordinary measures” to continue to pay its obligations, but it is unclear how long those measures can last.

The US is now facing a difficult decision over whether to risk defaulting on its debt or agree to a compromise with Congress that could spark further economic turmoil.