–Senate Minority Leader McConnell: Debt Deal ‘Within Reach’
–Sen. McConnell: Signals Plan Would Hike Debt Ceiling Til End of 2012
–Sen. McConnell: Plan Sees $1T in Spending Cuts Now, More Later
–Sen. Schumer: Still Much To Be ‘Determined’ in Debt Deal

By John Shaw

WASHINGTON (MNI) – Senate Minority Leader Mitch McConnell Sunday
said Congress and President Obama are “very, very close” to an agreement
to increase the statutory debt ceiling and cut spending.

Appearing on CBS’s ‘Face The Nation,” McConnell said there is a
“potential agreement within our reach.”

“I think we’re very close,” he said.

McConnell indicated the agreement would increase the debt ceiling
until the end of 2012, cut spending by $1 trillion now and then cut by
about to $2 trillion based on the work of special congressional panel.

This panel would seek its cuts from both entitlement reforms and
tax reforms, McConnell said.

Speaking after McConnell, Sen. Chuck Schumer agreed with the main
elements of the possible deal but emphasized that no agreement has been
reached.

“A lot of things haven’t been decided yet,” he said, adding that a
number of key issues haven’t been resolved yet as well as “hundreds of
details.”

The Senate will come into session at noon Sunday and both McConnell
and Senate Majority Leader Harry Reid are likely to give updates.

The Senate is scheduled to hold a procedural vote at 1 p.m. Sunday.

If a debt ceiling agreement is reached it would be placed on a bill
pending in the Senate and voted on by the upper chamber, possibly on
Monday. It would then be sent to the House for a final vote.

Moving a consequential bill through both chambers in a few days
will be difficult, especially since it will require a complicated and
fragile coalition of Democratic and Republican lawmakers to support it.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Timothy Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2, this coming
Tuesday.

** Market News International Washington Bureau: (202) 371-2121 **

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