President Obama, Congress reach debt ceiling deal

On Sunday (July 31), President Obama and Congressional leaders reached an agreement to increase the nation's debt ceiling -- currently set at $14.3 trillion -- and avert a government default. The tentative deal would also cut spending and ensure future deficit-reduction steps.

"There are still some very important votes to be taken by members of Congress, but I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default," said President Obama in a Sunday evening announcement to White House reporters.

Senate Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) announced the deal to Congress, where some members remain skeptical.

House Minority Leader Nancy Pelosi (D-Calif.) told reporters she needs to "see the final product" before she decides whether or not to support it. Republicans, for their part, have concerns about military spending cuts.

The deal comes just days before an Aug. 2 deadline to get a new authorization to borrow money or face a possible government default. If completed, the agreement would extend the debt limit through 2012.

What do you think? Problem solved or is the deal just pushing the problem further into the future?