Obama announces US deficit deal between party leaders

He said the deal would cut $1tn of spending over 10 years, and set up a committee to report by November on a proposal to further reduce the deficit.US President Barack Obama says Republican and Democratic leaders have reached an agreement on raising the US debt limit and avoiding default.But Congress still has to approve the deal, and no votes are expected until Monday at the earliest."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, a default that would have had a devastating effect on our economy," Mr Obama said.The parties face a Tuesday deadline to raise the $14.3tn (£8.7tn) debt limit.Democrats and Republicans in Washington have been deadlocked over finding a plan on how to cut spending and raise the debt limit as the Tuesday deadline approaches.The US president said it was not the deal he would have preferred, but noted that the compromise plan would make a "serious downpayment" on the US deficit.