Deal Reached on Debt Limit

The bipartisan deal still needs to be approved by Congress. Will it fly?

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President Barack Obama (Getty Images)

CNN is reporting that President Obama and congressional leaders reached agreement on a measure that would extend the federal debt ceiling, cut spending and guarantee more reduction efforts.

"There are still some very important votes to be taken by members of Congress, but I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default," Obama said during a rare Sunday-night news conference, according to CNN.

Even though the deal comes in time to avert a U.S. government default on Tuesday, it's apparently too soon to jump up and scream hallelujah. The proposal still requires congressional approval.

House Minority Leader Nancy Pelosi (D-Calif.) already is saying the legislation may not have enough support. And although they appear to have won a large part of their demands, not all Republicans are pleased with the proposed legislation.

"I don't know all the particulars of what the final product is in writing and what the ramifications will be," Pelosi said, noting the measure will have an impact for a decade or more. Asked about the outcome, she warned: "We all may not be able to support it or none of us may be able to support it."

Well, at least the financial markets liked it. Dow futures and the S&P 500 index were up after President Obama's announcement, according to the Associated Press. Hopefully, after Tuesday, our nation's leaders will be able to get back to really minding the economy.

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Sept. 19 2014 8:34 AM