The U.S. House of Representatives delayed Wednesday voting on a debt plan proposed by House speaker, John Boehner, pushing the ballot to Thursday.
The Republican party's two-step plan to the United States' looming insolvency was to cut the budget and raise the debt ceiling.
Opposition surged over the plan after the Congressional Budget Office, an independent agency, analysed the proposal and estimated the expenditures cut over 10 years would be US$350 billion less than the $1.2 trillion Boehner claimed.
As Congress prepares for Thursday’s critical vote, President Barack Obama’s budget office said it would not hesitate to veto Boehner’s plan if was approved by Congress.
The deadline set by the Treasury, 2 August, is less than a week away. The White House has said an alternative plan is underway.
International investors have begun to hedge, with the US dollar falling to a record low against the Swiss franc and a four-month low versus the Japanese yen on Wednesday.