President Barack Obama says Republican and Democratic leaders in the House and Senate have reached an agreement with him to raise the government's debt ceiling and avoid a default.
The next step for the debt limit deal reached is a vote in
the House and the Senate.
Right now, lawmakers are reviewing the deal that calls for
raising the government's borrowing power through the 2012
elections, in exchange for more than $2 trillion in spending cuts.
Obama told the nation on television that more than $2 trillion in spending cuts will be imposed gradually so they don't create a drag on the economy.
He said the spending cuts will reduce government spending to the lowest level it has been since when Dwight Eisenhower was president in the 1950s.
He said there will be no initial cuts to entitlement programs like Social Security and Medicare.
But he said both could be on the table along with changes in tax law as part of future cuts.