Debt talks: Dire warnings, a possible compromise?
With time growing short and warnings more dire, the first, fragile signs emerged Thursday of a possible compromise to raise the nation’s debt limit and avert a potentially catastrophic default on Aug. 2.
Under a plan discussed by the Senate’s top two leaders, President Barack Obama would receive enhanced authority to raise the debt limit at the same time procedures would be set in motion that could lead to federal spending cuts.
Word that Majority Leader Harry Reid, D-Nev., and Republican leader Mitch McConnell of Kentucky were at work on the fallback plan came as Obama and congressional leaders met for a fifth straight day in debt-crisis talks at the White House.
McConnell pronounced the session a good one and said, “We’re going to continue to discuss a way forward over the next couple of days and see what happens.”