Obama now open to short term deal

City A.M. Reporter
THE WHITE House signalled yesterday it could support a short-term increase in the US borrowing limit for “a few days” if lawmakers agreed to a broad deficit reduction deal but needed more time to pass it.

The move, a shift from President Barack Obama’s previous position, reflects the growing political reality that time is short for Congress to pass a massive deficit-cutting deal before the US runs out of money on 2 August.

A new proposal for long-term deficit reduction from a group of senators known as the Gang of Six has revived hope that a broad agreement on spending cuts can be reached to avoid a looming default and alleviate pressure on America’s triple-A credit rating.