Debt deal will be reached - McCain

It may take a "warning shot" like financial market turmoil but US Congress will ultimately agree on a debt ceiling deal to stave off default, a leading Republican senator says.

"This country is not going to go into default for the first time in history," Senator John McCain said in an interview with CBS Evening News late on Thursday.

With only days to go before an August 2 deadline to avert a potentially disastrous US default on its debt, McCain predicted that both Republican and Democratic plans would fail to pass Congress but said congressional leaders would then negotiate a compromise.

He said House Speaker John Boehner and the Republican leader in the Senate, Mitch McConnell, would reach agreement with the Democrats because Senate Majority Leader Harry Reid has already dropped a demand for tax increases.

But McCain acknowledged that getting their respective followers on board "may require some kind of a warning shot. For example, watch the markets tomorrow, the financial markets around the world."


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