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.
