US Debt Ceiling Rises by $2.4tn Says President Obama

America President Obama says Debt Ceiling Rised by $2.4 tn from $14.3 tn to aviod the default. Republican and Democratic leaders have reached an agreement to increase the US Debt limit.This Proporsal needs the approval of the both the Houses.USA government 's deficit will be reduced over 10 years.

US Debt Ceiling

In order to agree spending cuts a special bipartisan committee is also going to setup.Both the Houses will vote on Monday.Jane O'Brien of BBC says that the package is tough sell as some republicand,Democrats are opposed in various different aspects in House of Representatives.As the cut's do not go far enough and democrats expects that it doesn't include tax hikes.

USA faces a deadline to raise its $14.3 tn by tuesday or else to face the risk of default for the first time in US History and this has a possibility of spreading humiliation through international markets.Obama also said that this was not the preferred deal but we comprised to make a serious downpayment on the US Deficit.The Proposed debt deal in US was welcomed by financial Markets and hopes that it will stabilize markets.