Washington: President Obama signs deficit bill into law

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Washington: President Obama signs deficit bill into law

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President Obama has signed debt limit bill after approval of both Houses to avert countrys default.

03 August,2011 06:44 am

Just hours ahead of a deadline to avert an unprecedented U.S. default, President Barack Obama, without public ceremony, signed a bill on Tuesday (August 2) that raises the $14.3 trillion debt ceiling and sets in motion a plan to reduce U.S. deficits over 10 years.The United States stepped back from the brink of default on Tuesday but congressional approval of a last-gasp deficit-cutting plan failed to dispel fears of a credit downgrade and future feuds over taxes and spending.President Barack Obama and lawmakers from across the political divide expressed relief over the hard-won compromise to raise US borrowing authority. Nevertheless, US stocks fell sharply as investors fretted over persistent economic and political uncertainties dogging the worlds largest economy.Senate approval on a 74 to 26 vote of the $2.1 trillion deficit-reduction plan, already passed on Monday (August 1) by the Republican-controlled House of Representatives, drove away the immediate specter of a catastrophic US debt default.The rancorous debt and deficit battle between Democrats and their Republican rivals has left Obama politically bruised as he heads into a campaign for a second term in 2012.