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Via: cnn.com

Washington (CNN) — The U.S. Senate has passed a last-minute compromise plan to raise the nation’s debt ceiling in exchange for spending cuts.

On a 74-26 vote, the Senate sent the bill to President Barack Obama’s desk to be signed into law just hours before what would have been an unprecedented default.

The bill imposes sweeping new spending cuts over the next decade.

The measure was approved by the House of Representatives on Monday by a 269-161 vote, overcoming opposition from unhappy liberal Democrats and tea party Republicans.

If the current $14.3 trillion debt limit is not increased by the end of the day, Americans could face rapidly rising interest rates, a falling dollar and shakier financial markets, among other problems.

Regardless, the federal government could still face a credit rating downgrade.

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