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.

US parties hopeful of debt limit deal as deadline looms

US political rivals are seems to be positive about the chances of raising the $14.3tn (£8.7tn) debt limit by Tuesday and averting possible default.

 Mitch McConnell  Republican Senate leader said the sides were "very close" to a $3tn deal after talks with Vice-President Joe Biden.
 Richard Durbin Senior Senate Democrat spoke of "a more positive feeling regarding bill".
American politicians are hopeful a deal may be agreed before a procedural vote in the Democrat-dominated Senate shortly.
That in turn would allow for a new vote in the Republican-held House of Representatives before the Tuesday deadline.
America limits by law the total amount of debt its government can run up in order to pay its bills, and the Obama government is under mounting financial pressure.
White House senior adviser David Plouffe told NBC television on Sunday said that they will solve this matter positively and also said "Today is obviously a critical day."

Obama underscores urgency of debt-plan deal

US President Barack Obama has brief Democrat and Republican members must compromise to cut the US budget deficit and vote to raise the debt limit.

He bad time had almost run out, as Republican leaders scrambled to save their deficit-cutting bill amid a House of Representatives conservative revolt.

The Democrats meanwhile also announced they would present their plan to the Senate.

The fiscal fiasco leaves the US inching closer to a potentially catastrophic default on federal debt next Tuesday.

The US government will start running out of money to pay all its bills unless a $14.3tn (£8.7tn) borrowing limit is enhanced by 2 August.

US House set for key debt vote on Republican bill

A revised Republican bill to raise the US debt ceiling, cut spending and avert a federal default is set for a crunch House of Representatives vote later.

But House Speaker John Boehner's bill faces a conservative revolt, opposition by Senate Democrats and a White House veto threat.

Republicans needs 217 member out of 433to pass it.

Mr Boehner told dissenting colleagues on Wednesday: "Get your ass in line."

The US Treasury has warned the government will run out of money to pay all its bills unless a $14.3tn borrowing limit is enhanced by next Tuesday.