U.S. could default on debt 'very soon'

U.S. Treasury Secretary Jacob Lew has warned the U.S. is on course to hit its so-called debt ceiling, the limit to which it can legally borrow, by the end of the month, according to the Sydney Morning Herald.

The secretary called on immediate action from Congress to raise the ceiling to prevent harming economic recovery.

"Time is short. Congress needs to act to extend the nation's borrowing authority, and it needs to act now," Lew said last week.

The Obama administration warned Congress Friday the federal government could start missing payments on its bills starting Feb. 27 if nothing is done, according to a Fox News report.

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