JOE BIDEN

President Barack Obama told reporters Sunday that a deal has been reached to raise the federal debt ceiling and avoid the first U.S. default, the culmination of days of high-level, high-stakes political wrangling to attempt to resolve the nation's large deficits.

Senate Majority Leader Harry Reid has "signed-off" on a debt-raising deal that could be voted on as early as tonight, although the Senate's Republican leadership indicates a deal has not been reached yet as the U.S. attempts to avoid the first-ever default on debt by the U.S. government.

A deal to raise the federal debt ceiling and avoid the first ever U.S. default is "very close," but House Democratic Leader Nancy Pelosi said Sunday there is a chance they may not pass it.

A deal to raise the federal debt ceiling and avoid the first ever U.S. default is "very close" and a vote on a bipartisan measure could take place as soon as Sunday night, top Senate Leaders said.

After two weeks of acrimony, Democrats and Republicans, perhaps after having stared into the abyss, returned to the bargaining table Saturday. Still, no one will believe the issue has been resolved until President Barack Obama signs a bill that raises the debt ceiling and cuts the budget deficit.

Top congressional Republicans said on Saturday they were in serious talks with President Barack Obama to break a U.S. debt limit deadlock and were confident the risk of default by the world's largest economy could be avoided.

The White House said on Saturday it "strongly supports" a bill being considered in the House of Representatives that incorporates both Democratic and Republican ideas and would raise the debt limit to early 2013.

A bitter mood prevailed on Capitol Hill as lawmakers struggled on Saturday to find a compromise measure to lift the nation's $14.3 trillion debt limit three days before the deadline to avert a ruinous default.

Facing a deadline to avoid a ruinous default, congressional leaders on Saturday braced for a tense weekend of negotiations to try to reach a compromise on a measure to increase in the country's $14.3 trillion debt limit.

President Barack Obama is deeply involved in trying to win a debt deal and his White House was working flat out, aides said, pushing back against any impression Congress had sidelined the administration.

Norway is in mourning Friday, as the nation holds memorial and funeral services for the 76 victims of last week's attacks.

President Barack Obama's credibility as a leader hangs in the balance along with America's gold-plated credit rating as he strives to break a debt impasse with Republicans and avoid a ruinous default.

Unwavering Republican resistance to higher taxes has been a central obstacle to a debt talks deal, and no Congressman has embodied the anti-tax stance more than House Majority Leader Eric Cantor, R-Va.

Secretary of State Hillary Clinton sought to reassure Asian investors over U.S. debt worries Monday, saying she was confident President Obama would ultimately reach a deal with congressional leaders to prevent a catastrophic default.

With financial markets on edge, White House officials and Republican leaders scrambled to reassure them that the United States will avert default and lift its $14.3 trillion borrowing limit before August 2.

House Speaker John Boehner, R-Ohio, took pains to underscore that not only have the debt deal talks resumed, he says all parties are working toward an agreement. Time certainly is of the essence: the U.S. has less than 10 days to raise the debt ceiling and avoid a default.

The Senate will likely begin consideration this week of a bipartisan fallback plan to avert an unprecedented U.S. default of its debt, senior Democratic aides said on Sunday.

Credit ratings agency S&P Friday, like Moody's Thursday, warned that the U.S.'s credit rating could be downgraded, if an agreement on raising the debt ceiling is not reached soon. Meanwhile, the Reid/McConnell 'last chance' debt deal plan appeared to gain momentum Thursday, raising hope that a debt deal agreement will be reached soon.

China Thursday called on the United States to adopt responsible policies and measures to guarantee the interests of investors -- a communique that highlights the rising concern about a possible U.S. Government default. Meanwhile, modest debt talk progress was noted on Day 5, with bipartisan agreement on at least $1.5 trillion in spending cuts over 10 years.

President Barack Obama and top lawmakers will meet again on Monday in search of a deal on slashing the budget deficit and raising the $14.3 trillion debt ceiling before the United States defaults.

President Barack Obama and top lawmakers fell short on Monday of finding enough spending cuts for a deal to avoid an August 2 debt default and Republicans came under fresh pressure to agree to tax hikes.