Analysis
Jane O'Brien BBC News, Washington
The president says it's not the perfect deal. But he and the leaders of both parties now believe they have the framework for something they can put to their party rank and file.
It's still likely to be a tough sell. The Republican Tea Party members are unlikely to support it because the cuts don't go far enough, and many Democrats will be furious that it doesn't include tax hikes.
Both sides will hold further discussions on Monday before the agreement is drafted into legislation that can be put to a vote.
America's credit rating may still be downgraded, but it now looks more likely that the world's most powerful economy will be spared the humiliation of not being able to pay its bills on Tuesday.
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