WASHINGTON (Reuters) – The U.S. Senate announced a last-minute deal on Wednesday to avert a historic lapse in the government’s borrowing ability and a potentially damaging debt default, and to reopen the government after a two-week shutdown.
But even if the Senate and House of Representatives manage to overcome procedural hurdles to seal the deal before Thursday – when the Treasury says it will exhaust its borrowing authority – it will only be a temporary solution that sets up the prospect of another showdown early next year.
WASHINGTON, Oct 16 (Reuters) – The U.S. Senate prepared for
a last ditch effort Wednesday to avoid a historic lapse in the
government’s borrowing authority, a breach that President Barack
Obama has said could lead to default and deliver a damaging blow
to the global economy.
After a day of stop-and-go negotiations, the top Democrat
and Republican in the U.S. Senate were said to be close to
agreeing on a proposal to raise the debt limit – and reopen the
partially shuttered government – for consideration by the full
Senate on Wednesday.
WASHINGTON, Oct 15 (Reuters) – With the United States just a
day away from exhausting its ability to borrow money, U.S.
Senate leaders were still discussing a deal late on Tuesday
aimed at raising the debt limit and reopening federal agencies
that have been closed for two weeks.
Senate aides said a deal was close but details remained to
be worked out, and earlier hopes that a deal could be announced
late on Tuesday were not met.
WASHINGTON, Oct 15 (Reuters) – Democratic and Republican
leaders in the U.S. Senate could announce a deal late on Tuesday
to extend the government’s borrowing authority until Feb. 7 and
quickly re-open federal agencies that have been closed since
Oct. 1, a Senate aide said.
The development came after a chaotic day in which two House
plans failed and Fitch Ratings warned it could cut the sovereign
credit rating of the United States from AAA.
WASHINGTON (Reuters) – Efforts by lawmakers to stop a U.S. debt default were in disarray on Tuesday with just over a day before the government’s authority to borrow money lapses, risking the Treasury’s ability to pay bills and creditors.
Chaotic negotiations to end the U.S. fiscal impasse failed to produce a deal, and left Congress and President Barack Obama desperately searching for a way to reopen the government and raise the country’s debt limit ahead of a Thursday deadline.
WASHINGTON, Oct 15 (Reuters) – Republicans in the U.S. House
of Representatives failed to reach internal consensus on Tuesday
on how to break an impasse on the federal budget that could soon
result in an economically damaging default on the country’s
House Republican leaders proposed a plan to reopen the
government and avoid debt default but it was rejected in a
meeting with rank and file lawmakers. The plan differed in a few
important details from one in the U.S. Senate.
WASHINGTON, Oct 15 (Reuters) – U.S. senators expressed hope
that a bipartisan deal could emerge on Tuesday to end
Washington’s fiscal crisis even as Republicans in the House of
Representatives said they were working on a separate plan.
Even if Democrats and Republicans agree, it could be
Wednesday before the U.S. Senate signs off on a plan, senators
said, close to a Thursday deadline when the Obama administration
says it will reach its borrowing limit and risk default.
WASHINGTON (Reuters) – A month of combat in the U.S. Congress over government spending showed signs on Monday of giving way to a Senate deal to reopen shuttered federal agencies and prevent an economically damaging default on federal debt.
Senate Majority Leader Harry Reid, a Democrat, and his Republican counterpart, Mitch McConnell, ended a day of constant talks with optimistic proclamations, as details leaked out of the pact they were negotiating.
WASHINGTON (Reuters) – U.S. senators said they were closing in on a deal Monday that would reopen the government and push back a possible default for several months, though many hurdles remained as a Thursday deadline drew near.
The Senate’s top Democrat and top Republican both said they hoped they could soon reach an agreement that would allow them to avert a looming default and end a partial government shutdown that has dragged on for 14 days so far.
WASHINGTON (Reuters) – President Barack Obama said lawmakers appear to have made progress on a deal to reopen the government and avert a looming default on Monday as he prepared to meet congressional leaders with a Thursday deadline drawing near.
Obama and Vice President Joe Biden were due to meet at 3 p.m. with Senate Majority Leader Harry Reid, Senate Republican Leader Mitch McConnell, House of Representatives Speaker John Boehner, and House Democratic Leader Nancy Pelosi, the White House said.