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
News

Rock legend Neil Young files for divorce after…

The legendary Canadian rocker Neil Young has filed for divorce from his wife of 36 years.

Local

FDNY debuts new fire simulator for blazes at…

The New York City Fire Department christened its newest, state-of-the-art, custom-built simulator at its training academy on Randall's Island Tuesday.

Local

Bronx cop saves baby who stopped breathing

A Bronx police officer is credited with saving the life of a 2-month-old baby who stopped breathing Tuesday morning. Police Officer Johnny Castillo, 38, was…

Local

Brewer celebrates Women's Equality Day with voter pledge

Manhattan Borough President Gale Brewer celebrated Women’s Equality Day Tuesday by pledging to register at least five women voters before the Oct. 10 deadline. Brewer…

Movies

Review: The uneven 'Life of Crime' mostly gets…

Elmore Leonard's "The Switch" becomes the new indie crime dramedy "Life of Crime," with Jennifer Aniston as a kidnapped woman whose husband won't pay up.

Movies

Review: Pierce Brosnan gets a cut-rate Bond knockoff…

Pierce Brosnan tries to reclaim his glory days with the spy thriller "The November Man" but instead gets a sad DTV-style ripoff with lame action.

Music

Tiesto headlines Made in America

Electronic music legend Tiesto is ready to get in touch with his inner Rocky at the Jay Z-curated Budweiser Made in America festival this weekend…

Gossip

Ariana Grande addresses Big Sean dating rumors

Now that Ariana Grande and Big Sean were caught on camera holding hands, she has something to say.

College

When are 2014 college football playoffs? (Schedule, date,…

When and where are 2014 college football playoffs? A look at the schedule, date, TV, time for the semi-finals at championship game.

NFL

Dimitri Patterson suspended only for rest of preseason…

Dimitri Patterson ended up getting just a slap on the wrist.

Sports

Eugenie Bouchard excited for 'rowdy' fans at US…

Eugenie Bouchard is sure to endear herself to New York's tennis faithful as she tries to win her first grand slam title across the next two weeks.

MLB

MLB Power Rankings: Angels and A's still at…

MLB Power Rankings: Angels and A's still at top, Nationals climb

Parenting

Lure your baby to sleep with Maroon 5…

These new renditions of "Moves Like Jagger" and "Payphone" are Maroon 5 like you've never heard them before.

Wellbeing

Who is having the most orgasms?

  Single lesbians report having orgasms more often than heterosexual women but both gay and straight men still come out on top of the climax…

Home

Jonathan Adler shares his tips for a great…

Jonathan Adler took a break from boogie boarding at his beach house to tell us how to keep that Labor Day party festive.

Travel

Most popular Labor Day weekend destinations

Priceline.com released its Top 20 destinations for the end of summer, including Labor Day weekend. If you’re heading to any of these spots, expect a…