Barack Obama has seized momentum to paint Republicans as the party of the rich to gain victories on priorities of a tax cut and a new regulator.

A US super committee has grown more pessimistic about reaching a deal to shrink swollen deficits as it remains unable to close partisan gaps.

TheUS was headed toward an unprecedented default, and all Washington wanted to talk about was the manner in which the president had left a room.

President Barack Obama on Sunday announced a last-minute deal to raise the US borrowing limit and urged lawmakers to "do the right thing".

Efforts to avoid an unprecedented US debt default suffered a new blow on Thursday when fiscally hardline Republicans blocked a budget deficit plan.

A Republican plan to break a congressional deadlock over raising the US debt limit has stumbled amid delays and a revolt by fiscal conservative.

President Barack Obama on Tuesday supported a bipartisan proposal for a new deficit-reduction plan aimed at averting a debt default.

Deficit reduction talks between President Barack Obama and Republican leaders ran into trouble on Sunday at a meeting marked by testy exchanges.