7/28/2011White House "optimistic" debt ceiling compromise will be reached
Washington, The White House on Thursday said it remained "optimistic" that Congress will pass a balanced measure to raise the nation's debt ceiling ahead of the August 2nd deadline.
"We continue to remain optimistic that Congress will come to its senses, that cooler heads will prevail and that a compromise will be achieved," White House spokesman Jay Carney told reporters in Washington. "It really isn't that complicated at this point," Carney added.
He noted that the United States would face severe wide-spreading economic consequences if it defaults on its loans for the first time in history.
Meanwhile, stocks gave up some of their gains Thursday as the House of Representatives prepared to vote on a Republican-proposed bill to raise the debt-ceiling. The Dow Jones Industrial average rose less than a point to 12, 303 in afternoon trading.
The index had been up as many 82 points earlier in the day. The Dow has fallen over the previous four days over worries that the US might default on its debt as soon as next week if Congress does not raise the country's borrowing limit.
The House lawmakers are expected to vote later Thursday on a new plan to avoid a default. Speaker John Boehner pleaded with fellow Republicans to support the proposal, which calls for cutting USD 900 billion from the deficit over the next decade.
The bill still faces opposition from Senate Democrats and the White House but the vote could bring President Barack Obama and Congress a step closer to resolving the standoff.
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