Back to work for government workers in US

US GOVERNMENT workers are returning to work after a deal was reached to lift the state’s debt ceiling and thereby end the shutdown – a move that sent the S&P 500 to a record high last night.

Weeks of feuding between the Democrat and Republican parties in Washington DC came to an end just hours before the government risked defaulting on its debts.

The deal means the American government – which has debts approaching $17 trillion – will be funded until 15 January 2014, while the US Treasury is guaranteed powers to force more borrowing through until 7 February 2014. Yet the wrangling between President Barack Obama’s Democrats and the Republicans is likely to continue, with some investors believing it will prompt the Federal Reserve to stick with its ultra-loose policy.

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