July 22, 2011Obama, Boehner Move Closer to Deal
Following a comprehensive, bipartisan deficit-reduction proposal this week by the Senate’s so-called Gang of Six, President Barack Obama and House Speaker John Boehner restarted negotiations over a similar “grand bargain” (WSJ) that could save $3 trillion over ten years, while allowing for the nation’s debt ceiling to be raised in advance of a looming August 2 deadline.
While Congress is likely to raise the U.S. debt ceiling ahead of the August 2 deadline, lawmakers will still need to hash out a long-term deficit-reduction package to avoid market disruption and preserve U.S. global standing, says C. Fred Bergsten, director of the Peterson Institute for International Economics.
