The key point of contention is a deficit-reduction plan that that the Democrats have opposed since the spring.

Markets Stocks fell sharply and broadly amid worries that a deficit-reduction plan would not be reached by midnight tonight.

Should the long bond rally if Congress approves the deficit-reduction plan, it probably won't be for the reasons President Clinton has cited.

But he added that Democrats expected a full debate on the need for a deficit-reduction plan when the balanced-budget debate began next week.

At that time, the Treasury would seek another increase based on the budget and deficit-reduction plan that Congress is now considering.

The ad failed to mention that Mr. Kerry favored this a decade ago and only as part of a deficit-reduction plan.

The across-the board spending cuts, called sequestration, took effect 1 March when Congress failed to agree on a deficit-reduction plan.

Historically, deficit-reduction plans bite into economic growth by increasing taxes and cutting Government spending.

Stocks continued their seesaw course yesterday, falling broadly amid worries that a deficit-reduction plan would not be reached.

He has also pushed through a deficit-reduction plan, which his aides assert has gone far to push down long-term interest rates.