Both the House and Senate still must approve the compromise. No votes are expected in either house of Congress until Monday at the earliest, to give rank-and-file lawmakers a chance to review the package. Congressional leaders of both parties think they have the votes to get the compromised approved.


The president called the proposed deal a compromise that lets the country avoid default while making a serious down payment on deficit reduction. He said default would have a "devastating effect" on the U.S. economy.


As congressional leaders argued over the debt crisis last week, U.S. stock markets suffered their worst losses of the year and the value of the dollar slumped. 


All sides agreed on the need to cut spending and raise the debt ceiling. But they have squabbled for weeks on what to cut and how fast those cuts should be made.



Photo: AP/Carolyn Kaster



<a href="http://www.voanews.com/english/news/usa/Senate-Democratic-Leader-Reid-Agrees-to-Debt-Deal-With-Republicans-126489638.html" target="_blank" class="news_link">Source: Voice of America</a>

Obama Announces Deal to Raise Debt Ceiling