US Default Prevented But Economic Fears Remain

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Context

President Obama and officials from across the political divide were relieved over the compromise to increase the country’s borrowing limit following weeks of bitter partisan battles. However, economic experts believe that concerns still loom over future spending and tax feuds that could ultimately lead to a credit downgrade. The deal did not prevent US stocks to plunge as investors worry about the increasingly gloomy state of the American economy and the likelihood for a reduction of US gold-plated debt rating.