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Obama warns Republicans on debt limit

President Barack Obama called on Republicans in the US Congress to lift the country’s debt limit without preconditions, saying markets could go “haywire” if there is another confrontation over allowing new borrowing.

At the final press conference of his first term, a combative US president also said that Republicans should not expect to be paid a “ransom” in the form of aggressive new spending cuts for agreeing to lift the debt ceiling.

If Congress did not lift the debt ceiling in time, Mr Obama said: “Markets could go haywire. Interest rates could spike for anyone who borrows money. It would be a self-inflicted wound for our economy.”

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