U.S. President Barack Obama stands at the lectern to deliver remarks on the debt ceiling crisis in the briefing room at the White House in Washington July 31, 2011. Obama said on Sunday that Democrat and Republican leaders have reached an agreement to reduce the U.S. deficit and avoid default, but it was not clear if the spending cuts were deep enough to stave off a credit rating downgrade. (Xinhua/Reuters Photo)
Backgrounder: U.S. debt default risks
WASHINGTON, July 31 (Xinhua) -- U.S. President Barack Obama said Sunday night that he has reached a debt ceiling deal with Republican and Democratic leaders to stave off a debt default crisis.
A bipartisan plan could help lift the cloud of uncertainty over the U.S. economy and financial markets, he told a press conference.
Obama urged U.S. lawmakers to approve the debt ceiling compromise plan in next few days.
The U.S. federal government`s borrowing limit, currently at 14.29 trillion U.S. dollars, was reached on May 16. The Treasury Department said the it would run out of cash to pay its bills unless Congress agreed to raise the limit by Aug. 2.
Senate Republicans rejects Reid debt ceiling proposal
WASHINGTON, July 31 (Xinhua) -- U.S. Senate Republicans Sunday blocked a debt ceiling proposal put forth by Senate Majority Leader Harry Reid, with an unprecedented debt default crisis looming.
By a vote of 50 to 49, the Reid plan fell short of the 60 votes needed to clear a procedural hurdle to advance in the chamber. Full story
U.S. debt negotiators hammer out tentative agreement
WASHINGTON, July 31 (Xinhua) -- U.S. debt ceiling negotiators are working on a tentative agreement on raising the federal government`s debt limit to avert a looming debt default crisis.
The United States is not going to default, Senate Republican leader Mitch McConnell said Sunday morning in an interview with CNN.