Dear Commons Community,

It appears that President Obama  and congressional leaders of the Democratic and Republican Parties have reached an agreement on the debt ceiling according to a flash news report on the Huffington Post website.

Tony

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Huffington Post

August 1, 2011

Debt Ceiling Deal Reached To Avert Default!

WASHINGTON — President Barack Obama and Republican congressional leaders reached historic agreement Sunday night on a compromise to permit vital U.S. borrowing by the Treasury in exchange for more than $2 trillion in long-term spending cuts.

Officials said Republican Speaker John Boehner telephoned Obama at mid-evening to say the agreement had been struck.

Democratic Majority Leader Harry Reid said that both his party and opposition Republicans gave more ground than they wanted to. He said it’ll take members of both political parties to pass the measure.

Minority Leader Mitch McConnell said that the pact “will ensure significant cuts in Washington spending” and he assured the markets that a first-ever default on U.S. obligations won’t occur.

Both the leaders said they will brief their colleagues tomorrow on the details of the agreement.