The US Congress has passed a bill extending funding for the federal government by two weeks, staving off a possible government shutdown. It comes as politicians continue to tussle over Republican plans to cut federal domestic spending by a quarter. The bill contains $4bn (£2.5bn) in agreed cuts, well short of the $60bn targeted by Republicans.
Federal Reserve chairman Ben Bernanke has warned that the cuts plan would cost the US economy 200,000 jobs. “I would like to see job creation,” said Bernanke, adding that the impact was "not trivial".