Wednesday, October 16, 2013

Senate leaders reach deal to avoid default, end shutdown

The United States government could soon be back in business. According to a Republican member of the US Senate, lawmakers in Washington have reached an agreement that will re-open the government and save the country from default.
Sen. Kelly Ayotte (R-New Hampshire) told the Associated Press early Wednesday that leaders in her chamber reached a deal that would end a shutdown now in its second week, while also raising the nation’s debt ceiling and in turn increasing the country’s ability to borrow from international lenders.
CNBC reported soon after that Republican Party senators planned to announce an agreement at 12p.m. EDT that afternoon.
A deal would keep the government open through at least January 15, the AP reported, and the debt ceiling would be raised through February 7.
Rep. John Boehner (R-Ohio), the speaker of the House of Representatives, is prepared to rely on Democratic votes in Congress to approve the bipartisan deal, NBC News correspondent Kelly O’Donnell heard from sources.
Moments earlier, Sen. Saxby Chambliss (R-Georgia) told National Public Radio, "I think folks on both sides of the aisle in the Senate are ready to get this done.
The federal government was slated to hit its borrowing limit as early as Thursday, setting the stage for an all-but certain default. On Tuesday, Fitch ratings warned the US of a possible credit downgrade.