Leaders of the House of Representatives and the Bush administration reached an agreement yesterday on a $150bn fiscal stimulus package to stave off a recession.

The deal will provide cheques of between $300 and $1,200 to some 117m Americans, with payments phasing out for individuals earning more than $75,000 a year and couples earning more than $150,000 a year. Other measures include new tax breaks for large companies and small businesses, designed to bolster investment, and a lifting of the limit for the purchase of mortgages by Fannie Mae and Freddie Mac from $417,000 to $625,000.