US debt drama nears end as Senate tackles default threat

US senators raced yesterday to pass a bipartisan debt limit deal approved overwhelmingly by the House of Representatives, with the worst-case scenario of an economy-cratering default seemingly avoided.

The Treasury has warned it could run out of money to pay its bills by Monday – leaving almost no room for delays in enacting the Fiscal Responsibility Act, which suspends the debt limit through 2024 while trimming federal spending.