Barack Obama has reached a deal with congressional leaders to reduce the U.S. deficit and to avoid default

The bipartisan plan to raise the borrowing limit will be presented to rank and file Democrats and Republicans later today.

At the heart of the agreement is a cut of one trillion dollars over ten years. A panel will then be set up to find at least another $1.5 trillion dollars worth of savings.

Financial markets immediately showed signs of relief with a deal in the making ahead of Tuesday’s deadline which is when the money runs out.

But it is still not clear if Washington has done enough to avoid a credit rating downgrade over the next few days.

euronews
Photo: topnews.in