The Federal Treasurer Joe Hockey has downplayed concerns over the United States' ongoing shut-down and debt ceiling debates, as Barack Obama rejects a proposal to extend borrowing authority.

Speaking from Washington before the recent announcement by Obama, Mr Hockey said: “America is not going to default on its debt... a clear message that I got out of meetings with members of congress [was that] there would be a resolution to this matter and it is quite clear that America is being pulled back from the brink, as sensible people expected.”

Mr Hockey spoke after meeting with high-placed officials from the World Bank, the IMF and the Federal Reserve, as well as the finance ministers of Japan and India.

Some US Republicans claim their proposal for a short-term increase to the borrowing limit has not been rejected, but several major media outlets report otherwise.

A statement from the White House said that, though no determination was made, Obama “looks forward to making continued progress with members on both sides of the aisle.”

“The President’s goal remains to ensure we pay the bills we’ve incurred, reopen the government and get back to the business of growing the economy, creating jobs and strengthening the middle class,” the statement said.

There has been plenty of speculation as to what the debt situation in the United States will mean for Australia. Mr Hockey says if the country sticks to what it is doing, it should be fine.

“As long as we all continue to focus on the medium-term challenges and not be distracted by the day-to-day events here in Washington, then we can have a growth trajectory for the global economy that sustains the current level of growth and improves on that growth with further new investment in infrastructure and a range of other growth initiatives,” the Treasurer says.