By Marcus Leach

A last-gasp deal has been struck by the US House of Representatives to avoid a federal debt default.

The deal was sealed by 269 votes to 161, with President Barack Obama expected to sign the bill into law on Tuesday after it has been approved by the Senate.

The new bill will raise the debt limit by up to $2.4 trillion (£1.5 trillion) from $14.3 trillion, and makes savings of at least $2.1 trillion in 10 years.

There was further reason for cheer at the session, as Congresswoman Gabrielle Giffords, who was shot in the head in Tucson in January, made her first appearance on Capitol Hill since the incident.

Join us on
Follow @freshbusiness