Sunday, July 31, 2011
US Senators are expected to vote within the next few hours on a last-ditch deal to avoid a default, but America is unlikely to avoid a major blow to its economic dominance.
If the deal passes in the Senate it will still need to be passed by the House of Representatives.
Democratic Senate Majority Leader Harry Reid said he was "cautiously optimistic" about prospects for an agreement.
He said: "There are a number of issues yet to be resolved, and we must understand that there's no agreement that has been made. We're optimistic that one can be reached but we're not there yet."
Asked whether the Senate would vote on a deal Sunday, a tight-lipped Reid told thronged reporters: "We hope to."
The deal, which would see the country’s debt ceiling raised and deficit reduced by about $3 trillion (£1.8 trillion) will not be enough for America to preserve the triple-A credit rating that it has enjoyed since the Second World War, according to Pimco, one of the world’s biggest debt investors. (more)