US to avoid default as Senate backs debt ceiling rise

The US Senate has vote the deal  between Republicans, Democrats and President Barack Obama to raise the US debt ceiling and avert a default.

The bill passed the Senate by 74 votes to 26. Mr Obama is due to speak shortly and then sign the deal into law.

The bill increase the debt limit by up to $2.4tn (£1.5tn) from $14.3tn, and must achieve the saving at least $2.1tn in 10 years.

The deal was struck after months of fierce negotiations between the White House and lawmakers of both parties.

The vote came roughly 12 hours before Washington was due to run out of time. Without a deal to increase the debt ceiling the US would be unable to meet all its bills, according to the US treasury department.

"The push-and-pull people saw in Washington this week was not gridlock, it was the will of the people working itself out," Mr McConnell said.

"Together, we have a different new way and ideas of doing business in Washington," he added.

Senate Majority Leader Harry Reid spoke after Mr McConnell, saying that though debt deal was not correct, the US needed to avert the financial disaster that would have been caused by a default.