(Reuters) – Congressional leaders rushed to line up Republican and Democratic votes on Monday for a White House-backed dealto raise the U.S. borrowing limit and avert an unprecedented debt default.
With scars still fresh from the months-long debate over increasing the $14.3 trillion debt ceiling, a new battle was shaping over the incendiary topic of taxes.
Votes were expected later in the day in the House of Representatives and Senate on a plan to cut at least $2.4 trillion over 10 years, form a new congressional committee to recommend a deficit-reduction package by late November, and raise the borrowing limit through 2013.
Global markets showed signs of relief on Monday after becoming unnerved in recent days by the bitter deadlock in Washington. Without a deal by Tuesday, the United States, the world’s largest economy, would start running out of money to pay its bills.
U.S. stocks rose more than 1 percent at the open on Monday, while the U.S. dollar rose modestly against the yen and the Swiss franc, a favored safe haven for nervous investors in recent weeks.
Full article provided by Reuters @: