capitol hill
Media playback is unsupported on your device

Political deadlock in Washington could hit benefits

15 October 2013 Last updated at 02:42 BST

White House talks on raising the US debt limit before it expires this week have been delayed to allow lawmakers more time to hammer out a deal.

The US must raise its $16.7tn (£10.5tn) borrowing limit by Thursday so that the nation can pay its bills.

The International Monetary Fund (IMF) has warned that a US debt default would trigger global economic turbulence.

A failure to raise the borrowing limit would also impact millions of Americans who receive benefits such as Social Security and Medicare.

Mariko Oi reports from New York.