An agreement to increase the debt ceiling has been signed into law — called the Budget Control Act of 2011. The legislation puts mechanisms in place to increase the debt limit by $2.1 trillion in several steps, which is enough to extend the Treasury's borrowing authority through the end of next year. It also provides for an equivalent amount of spending cuts over the next 10 years.
If additional savings are enacted—or if a Balanced Budget Amendment is sent to the states for ratification before the end of the year—the debt limit could increase by as much as $2.4 trillion.
Fidelity has summarized details of the new law, along with a number of key issues that they will be evaluating in the coming weeks. Click here to access Fidelity's review.