Time running out for debt compromise, the White House warns

The White House warned that time was running out to reach a compromise on the US debt limit and said that Republicans and Democrats must come together now on an agreement.

White House spokesman Jay Carney told reporters the administration firmly believes a deal can be reached. Pressed on whether there is flexibility to be able to pay the government's bills after the Aug. 2 deadline, Carney said, "That deadline is hard and fast."

"People keep looking for off-ramps. They don't exist," he added.

Carney was also asked whether a downgrade of the US credit rating was a more imminent risk than a default. "A downgrade is a bad thing. A default is a catastrophic thing," he said.