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Aussie treasurer fears impact of US default

Aussie Treasurer: US default is 'inconceivable'

If President Barack Obama and Congress are unable to reach an agreement that would reopen the federal government and raise the $16.7 trillion federal borrowing limit by Thursday, the United States runs the risk of a first-ever debt default, which Australian Treasurer Joe Hockey said Monday could have a severe impact on the global economy.

"It is almost inconceivable that the United States would default on its debt repayments and I think members of Congress know that," Hockey told CNBC's Amanda Drury.

"The question is, how are they going to ensure that this extraordinary period of uncertainty does not become the norm for the rest of the Obama administration term in office. That's the big issue."

—By CNBC's Drew Sandholm. Follow him on Twitter @DrewSandholm

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