Geithner in 24-hour warning as US debt talks fold again

US Treasury secretary Tim Geithner has said the next 24 hours are critical after talks between the Democrats and Republicans on the US debt ceiling broke down again on Friday night.

With just a week to go before the 2 August deadline for the $14.3 trillion (£8.8 trillion) to be raised, Geithner said talks due to be held on Monday would be crucial to the health of the global economy.

He said: 'For us to get this done [by 2 August] which is critical, and that’s the deadline all the leaders accept, they need to start this process in the House Monday night, so they can demonstrate to the world we’re going to be on a path to get this done.'

Geithner made his comments after the latest round of talks between Barack Obama and John Boehner, the leading Republican at Capitol Hill, collapsed late on Friday night.

The 'Gang of Six' senators last-ditch proposals issued last week appears to have been dismissed as a viable solution, while the Federal Reserve has started preparing for a possible default.

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Quinn Bowman is a freelance journalist based in Washington DC and has been covering the on-going negotiations between the White House and Congress.