With a day to spare, debt-limit deal done

Rep. Gabrielle Giffords, flanked by her husband Mark Kelly and Rep. Debbie Wasserman Schultz, arrives to the Capitol yesterday to vote on the debt limit bill in the House.

The House of Representatives last night approved an 11th-hour deal to raise the borrowing limit, clearing the biggest hurdle to averting a potentially catastrophic debt default.

The passage by 269 votes to 161 by the Republican-controlled House paved the way for the approval in the Senate of a $2.1 trillion deficit-cutting plan hammered out over the weekend.

The Democratic-led Senate was expected to vote on the plan today.

Financial markets worldwide have been rattled by uncertainty over whether the compromise plan could pass the House in the face of objections from conservative Tea Party Republicans and from liberal Democrats.

The deal to raise the U.S. government’s $14.3 trillion borrowing limit removed the risk of the United States not being able to borrow money to pay all of its bills.

A debt default by the world’s largest economy would send shockwaves through the international economic system.

In the hours leading up to the House vote, Republican and Democratic leaders worked furiously to sell their rank-and-file on a deal reached with President Barack Obama in a bid to end an acrimonious impasse that has undermined Americans’ faith in their political institutions and hurt America’s image abroad.

But fears remained that the United States could still be hit by a damaging credit ratings downgrade, which would raise U.S. borrowing costs, threatening a fragile economic recovery and rattling global investors.

The compromise plan calls for spending cuts over 10 years but no new taxes, creates a powerful new congressional committee to recommend a deficit-reduction package by late November and raises the U.S. borrowing limit into 2013.

It was hard to identify winners in a fight that finally moved towards a conclusion after a compromise agreement reached on Sunday.


News
Entertainment
Sports
Lifestyle
Local

Memorial held for Sean Collier, MIT police officer…

More than 1,600 people gathered at MIT on Friday for a memorial service for Sean Collier, the police officer shot to death a year ago in the aftermath of the…

National

Florida man charged with murdering son to play…

A Florida man annoyed that his 16-month-old crying son was preventing him from playing video games suffocated the toddler, police said on Friday.

International

Powerful 7.2 magnitude earthquake rattles Mexico

A powerful earthquake struck Mexico Friday, shaking buildings and sending people running into the street, although there were no reports of major damage.

News

OMG! Exercise can make skin (and butt) look…

A moderate exercise regime can turn back time and actually reverse the skin's aging process, according to new research. The study showed that a minimum…

Entertainment

Whoopi Goldberg makes her debut as marijuana columnist

"It helps my head stop hurting, and with glaucoma your eyes ache, and she takes the ache out. It's wonderful," she said.

The Word

Kate Middleton made fun of Prince William's bald…

Kate Middleton and Prince William are in Sydney, Australia, right now, and it sounds like that brash Aussie sense of humor might be rubbing off.

The Word

Is Tom Cruise dating Laura Prepon?

"Mission: Impossible" star Cruise is said to be dating Laura Prepon, star of "Orange is the New Black."

Television

'Scandal' recap: Season 3, Episode 18, 'The Price…

Sally is Jesus, Olivia caused global warming, and Mellie's still drunk. Let's recap the Scandal finale. A church full of Washington insiders is about to…

NHL

NHL video highlights & analysis: Red Wings dump…

NHL video highlights & analysis: Red Wings dump Bruins in Game 1

MLB

MLB video highlights: Orioles top Red Sox, 8-4…

John Lackey roughed up for second straight outing

MLB

MLB video highlights: Red Sox score two in…

Lester shines in Red Sox win over White Sox

Sports

2014 Boston Marathon preview: Elite American, International runners…

2014 Boston Marathon: Elite American, International runners to watch

Tech

VIDEO: 'Vein-scanning' may become the future of paying

Designed to make transactions quicker and easier, the technology works by scanning the unique vein patterns in each person's palm.

Tech

#FollowFriday: 10 of the smartest Twitter accounts

Spending lots of time on Twitter? You might as well learn something. Here are some of the smartest accounts to follow.

Style

Light-up nail art syncs with phone

This Japanese technology syncs light-up nail art with your phone.

Wellbeing

Why is dance cardio taking off in NYC?

Instructors at some of the city's hottest classes explain why.