US inches toward deal to reopen govt

US Senate leaders were nearing a deal on Tuesday in talks to reopen the US government and prevent a default on American debt that economists say could tip the global economy back into recession.

But an agreement in the Senate would only move the country halfway toward solving a bitter fight between Republicans and US President Barack Obama's Democrats over government spending. Many conservatives in the House of Representatives were standing fast against the plan that would fund the government through Jan 15 and allow the Treasury Department to borrow money to pay US bills until February.

With just two days left before the Treasury says it will run out of borrowing capacity, congressional aides predicted Senate Majority Leader Harry Reid and Republican leader Mitch McConnell could seal an agreement by midday, easing dual crises that have sapped confidence in the world's dominant economy and shaken support for Republicans. Both House and Senate Republican leaders scheduled private meetings with party members on Tuesday.