Obama announces U.S. debt, deficit deal

U.S. President Barack Obama and congress leaders agreed to cut $1 trillion from federal government deficit spending and more than $2 trillion over 10 years. It would also allow the U.S. debt ceiling to be raised before a Tuesday deadline, VOA reports. Obama announces U.S. debt, deficit deal In a late night appearance in the White House briefing room, Obama presented a broad outline of the agreement that he noted was still subject to crucial votes in the Senate and House of Representatives. Saying the process of reaching the agreement had been difficult and that it is not the one he would have preferred, Obama turned to a major aspect of the deal - creation of a bipartisan committee that would make recommendations on substantial additional cuts that Congress would then vote on. Obama said, "In this stage, everything will be on the table. To hold us all accountable for making these reforms, tough cuts that both parties would find objectionable would automatically go into effect, if we don't act." Recommendations of the committee would be made by November, and the proposals would be put to the U.S. Congress for an up or down vote. Obama said, "Most importantly, it will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face the same kind of crisis in 6 months or 8 months or 12 months. And it will begin to lift the cloud of debt and the cloud uncertainty that hangs over our economy." Barack Obama (Beta/AP)

Obama announces U.S. debt, deficit deal

In a late night appearance in the White House briefing room, Obama presented a broad outline of the agreement that he noted was still subject to crucial votes in the Senate and House of Representatives.

Saying the process of reaching the agreement had been difficult and that it is not the one he would have preferred, Obama turned to a major aspect of the deal - creation of a bipartisan committee that would make recommendations on substantial additional cuts that Congress would then vote on.

Obama said, "In this stage, everything will be on the table. To hold us all accountable for making these reforms, tough cuts that both parties would find objectionable would automatically go into effect, if we don't act."

Recommendations of the committee would be made by November, and the proposals would be put to the U.S. Congress for an up or down vote.

Obama said, "Most importantly, it will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face the same kind of crisis in 6 months or 8 months or 12 months. And it will begin to lift the cloud of debt and the cloud uncertainty that hangs over our economy."