Barack Obama has signed into law a deal to raise his government's borrowing limit after political wrangling threatened to tip the country into default. Ratings agencies have maintained the coveted AAA rating on US Treasury bonds, but investors will be keeping a close eye on the deficit reduction plan.
In the studio this week we have the Guardian's financial columnist Nils Pratley and the Observer's foreign affairs specialist Peter Beaumont. They're joined on the line from Washington by Guardian correspondent Richard Adams.
Having signed the deal, there are now big questions over Barack Obama's handling of the crisis. Many in his own party feel let down over what they feel is a failure to stand up to the Republicans sufficiently, and particularly those aligned to the Tea Party movement. Next year's presidential election is certain to be a contest fought over the economy and with unemployment nearing record highs, Obama is facing an uphill struggle.
Meanwhile closer to home, the eurozone is facing an anxious summer as bondholders begin to circle Italy and Spain, driving up the cost of borrowing for two of the continent's largest debt-laden economies. And in Greece, which the Guardian is focusing on this week, Peter Beaumont describes how middle-class Greeks are being driven into poverty by the financial crisis.
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