–Senate Majority Leader’s Decision To Delay Suggests Bid For Debt Deal
–Senate Adjourns Saturday After Day of Conflicting Signals
–House Votes To Kill Sen. Reid’s Debt Bill
–Hill GOP Suggests Deal Is Near, Sen. Reid Disputed Positive Assessment

By John Shaw

WASHINGTON (MNI) – A confusing, volatile day on Capitol Hill took
yet another turn when Senate Majority Leader Harry Reid late Saturday
night postponed a key procedural vote on debt limit legislation from 1
a.m. Sunday to 1 p.m. Sunday.

Reid appears to have postponed the Senate vote for 12 hours to give
congressional leaders and the White House more time to craft an
agreement on debt ceiling legislation as the Tuesday deadline ominously
approaches.

Speaking on the Senate floor, Reid said the delay in the Senate
vote is designed to give debt limit negotiators “as much room as
possible to do their work.”

The status of debt limit talks remains unclear.

At around 4 p.m. Saturday, House Speaker John Boehner and Senate
Minority Leader Mitch McConnell told reporters that they were in direct
and intense talks with President Obama on resolving the debt ceiling
impasse.

Boehner said he was “confident” an agreement can be reached with
Obama and legislation passed by Congress to avoid a default.

McConnell also said he was “confident and optimistic” an agreement
was within reach.

He said he had been in contact with both Obama and Vice President
Biden, adding that the highest levels of the administration were “fully
engaged” with Congress in solving the debt ceiling impasse.

“We’re going to get a result,” McConnell said, adding “our country
is not going to default.

But after Senate Majority Leader Harry Reid and House Minority
Leader Nancy Pelosi concluded a 90 minute meeting with Obama at the
White House Saturday afternoon, Reid came to the Senate floor to say
that no agreement was imminent.

The House voted Saturday to reject the debt ceiling package
assembled by Reid on a 246 to 173 vote. After the House vote, Majority
Leader Eric Cantor said the House would be in session briefly Sunday for
a pro-forma meeting but would not resume legislative business until
Monday.

It is still assumed on Capitol Hill that the final debt hike
package will blend aspects of the plans drafted by House Speaker John
Boehner and Reid.

If an agreement is reached it would be placed on a bill pending in
the Senate and voted on by the upper chamber, possibly on Monday. It
would then be sent to the House for a final vote.

Moving a consequential bill through both chambers in a few days
will be difficult, especially since it will require a complicated and
fragile coalition of Democratic and Republican lawmakers to support it.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Tim Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2, this coming
Tuesday.

** Market News International Washington Bureau: (202) 371-2121 **

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