Deficit Plan Before Congress, U.S. Credit Rating May Still Drop14:50
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Both Houses of Congress are expected to vote today on the deal reached last night between the President and Congressional leaders to raise the federal debt ceiling while cutting spending by over two trillion dollars.

Financial markets from the U.S. and around the world are breathing a sigh of relief, but party leaders are still working hard to round up the votes necessary.

Analysts say the agreement leaves the most serious long term debt problems un-addressed, economists are warning that a cut in spending could further slow the struggling U.S. economy, and at least one credit rating agency says it may still lower the U.S. rating by a notch.

Guests:

  • Gail Chaddock, Capitol Hill Correspondent for the Christian Science Monitor
  • Binyamin Appelbaum, Washington correspondent for The New York Times

This segment aired on August 1, 2011.

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