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U.S. Senate leaders resume fiscal negotiations: Republican aide

WASHINGTON (Reuters) - Democratic and Republican leaders in the U.S. Senate have resumed negotiations on legislation to avert a default and to reopen shuttered federal agencies after attempts in the House of Representatives failed on Tuesday.

Don Stewart, a spokesman for Senate Republican leader Mitch McConnell said: "Given tonight's events, the leaders have decided to work toward a solution that would reopen the government and prevent default. They are optimistic an agreement can be reached."

A spokesman for Senate Majority Leader Harry Reid also said that the two leaders have "re-engaged" and "are optimistic that an agreement is within reach." Neither spokesman gave a likely timetable for reaching a deal.

(Reporting by Richard Cowan; Editing by David Brunnstrom)

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