President Obama has signed into law an agreement raising the US Government's debt limit, averting the risk of a possible default. He described the deal which came after weeks of political wrangling as an important first step towards ensuring that America led within its means. Mr. Obama was speaking after the US Senate approved the Bill following a similar vote in the House of Representatives on Monday. Immediately after the Senate passed the bill by a of vote of 74 to 26, Obama told reporters at the White House that the process of reducing the government's deficit has begun. The new law immediately allowed the Treasury to borrow an additional $400 billion, with more borrowing allowed later. It is also intended to reduce the nation's $14.3 trillion deficit by at least $2.1 trillion over 10 years. The House of Representatives passed the bill on Monday by a vote of 269 to 161, after weeks of intense debate.Under the bill, a bipartisan committee in Congress will work to find further savings in federal budgets.The president said the agreement requires that both major political parties work together on a larger plan to cut the federal budget deficit, which he said is important for the long-term health of the U.S. economy.Obama said that plan would need to include cuts to social programs – a move that many Democrats oppose – and higher taxes – which many Republicans reject. Neither option was included in the compromise legislation.