The likely Senate deal would require Democrats to make a minor concession on Obamacare. But the provision would fall well short of the drive to delay or defund the historic law which prompted Republicans to launch the government shutdown strategy and to use the debt ceiling hike as leverage.
Earlier, Reid furiously accused Boehner of seeking to save his own political skin at the expense of the United States.
“Let’s be clear: The House legislation will not pass the Senate,” Reid said. “I am very disappointed with John Boehner, who would once again try to preserve his role at the expense of the country.”
Boehner may once again Wednesday be left with the unenviable choice that has come to define his speakership in Washington’s divided government.
Does he stick with the Tea Party faction of his party, and possibly save his job but risk culpability in sending the US economy into a first default of modern times?
Or does he try to pass a compromise plan acceptable to Senate Democrats and Obama, with the help of minority Democratic votes a scenario that could fritter away his party power base and possibly cost him his job?
China and Japan, which between them hold $2.4 trillion in US Treasuries, are already alarmed at the implications of the crisis.
Investors endured a roller coaster day. US stock markets closed down after a day of wild fluctuations, with the Dow Jones Industrial Average shedding 133.25 points (0.87 percent) to 15,168.01.
The broader S&P 500 fell 12.08 (0.71 percent) to 1,698.06, and the Nasdaq Composite lost 21.26 (0.56 percent) at 3,794.01.
