WASHINGTON – Leaders from both parties were eager to reach a deal on the nation’s debt-ceiling crisis Sunday to head off a negative reaction in Asian markets when they open for the week, according to both Democratic and Republican aides, CNN informs. Angry Democrats rejected a proposal from Republicans Saturday for a two-step approach to raising the debt limit as congressional leaders raced against the clock to find a solution, Democratic sources said.
Congressional leaders met again Saturday evening to discuss the two-step approach put forward by House Speaker John Boehner, which would raise the country’s debt ceiling in stages, the sources said. Boehner; Senate Majority Leader Harry Reid; Sen. Mitch McConnell, the Republican Senate leader; and House Democratic Leader Nancy Pelosi, participated in the meeting. Under the two-step plan, the nation’s debt ceiling would be raised through 2011 in exchange for spending cuts totaling around $1 trillion, the Democratic sources said. The ceiling would be raised again, through 2012, after a special commission is set up to find ways to reduce the long-term debt through entitlement and spending cuts and tax reform, they added.