Signs of concrete deal on debt limit emerge on Capitol Hill

Associated Press

WASHINGTON

Racing to avoid a government default, President Barack Obama and Republican congressional leaders reached urgently for a compromise tonight to permit vital borrowing by the Treasury in exchange for more than $2 trillion in long-term spending cuts.

Senate Republican Leader Mitch McConnell said the two sides were “really, really close” to a deal after months of partisan fighting.

A few hours later, Senate Majority Leader Harry Reid issued a statement saying he had signed off on a pending agreement, subject to approval by the Democratic rank and file.

Even so, there was no confirmation from the White House, McConnell or House Speaker John Boehner’s office of a final accord two days before a deadline to raise the federal debt limit and enable the government to keep paying its bills.