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Senate to skip vacation to work on deficit reduction

By the CNN Wire Staff
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Senate shortens holiday to work on debt
  • Senate to forgo recess to work on deficit reduction
  • President has urged a deal that would raise the $14.3 trillion debt ceiling

(CNN) -- The Senate will forgo its scheduled recess for the week of July 4 to work on cutting the deficit, Sen. Harry Reid said Thursday.

Both parties are trying to strike a deal on raising the federal government's current $14.3 trillion debt ceiling by the start of August.

President Barack Obama has urged leaders of both parties to negotiate in good faith to reach a deal.

"This is urgent," he said Wednesday.

Top economic analysts have warned of potentially catastrophic repercussions if the ceiling is not raised by August 2, including skyrocketing interest rates and a plummeting U.S. dollar.