Agreement Reached On Debt Ceiling

Monday, August 1st, 2011 at 8:12 am

Congress is moving quickly today on a hard-fought agreement to raise the federal debt ceiling. Of course this allows the U.S. to avert a potentially devastating default on our country’s obligations. The legislation will mix a record increase in the government’s borrowing cap with the promise of more than $2 trillion in spending cuts over the coming decade.

News of the agreement between President Barack Obama and congressional leaders gave an instant boost to Asian financial markets and a huge dose of relief to those worried that a default could send the economy into recession.

The Senate seems likely to vote first on the measure while House GOP leaders work to assemble support for it. Democratic votes are certain to be needed to pass the measure in the Republican-dominated House, just as Republicans will be needed to clear the measure through the Democratic Senate. We’ll keep you posted when more details emerge.

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