US agrees debt ceiling rise of $2.1trn

Laura Miller
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President Barack Obama has announced a deal to end the US debt crisis, which will raise the nation's debt ceiling by at least $2.1trn and cut the federal deficit by as much as $2.5trn over a decade.

The US President last night said leaders of both parties in the US House and Senate had approved the agreement, which must now be sold to Congress by 2 August, according to Bloomberg. "This compromise does make a serious down payment on the deficit-reduction we need. Most importantly it will allow us to avoid default," Obama said. A raise in the debt ceiling by at least $2.1trn would serve the nation's needs into 2013. The deal includes a cut in spending over a decade of $917bn. Initially the debt limit would be raised by $900bn, and then a special committee would be tasked with...

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