White House, Congressional Leaders Reach Debt Deal
While still not a 100% done deal at this moment, it is encouraging news. Just like we did under George W. Bush, we again appeared poised to raise the debt ceiling under Barack Obama as part of a last minute deal.
Two days before the deadline for a possible U.S. government default, President Barack Obama and congressional leaders reached agreement Sunday on a legislative package that would extend the federal debt ceiling while cutting spending and guaranteeing further deficit-reduction steps.
The proposed deal, which still requires congressional approval, brought some immediate relief to global markets closely watching the situation play out and to a nation filled with anger and frustration over partisan political wrangling that threatened further economic harm to an already struggling recovery.
However, there is no guarantee the plan will win enough support to pass both chambers of Congress.
Democratic and Republican leaders in both the House and Senate were briefing their caucuses about the agreement on Sunday night or Monday.
"There are still some very important votes to be taken by members of Congress, but I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default," Obama said in brief remarks to reporters.
Minutes earlier, Senate Majority Leader Harry Reid, D-Nevada, and Minority Leader Mitch McConnell, R-Kentucky, also announced the deal on the Senate floor.
Sen. John Hoeven, R-North Dakota, earlier told CNN that cuts to military spending were a final sticking point
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