US President Joe Biden signed a debt ceiling bill passed by Congress after weeks of wrangling to prevent a catastrophic and self-inflicted default on the world’s largest economy.
The Fiscal Responsibility Act of 2023 gives the government the power to extend the debt ceiling to renew borrowing to take account of paying the bills, with the Treasury warning that if the debt ceiling is held beyond Monday America will go bankrupt due to its 310 trillion dollar debt.
It was feared that in the event of bankruptcy, there would be unrest in the business circles, massive job losses and a recession.
In a statement yesterday, the White House thanked Republican and Democratic leaders in Congress for their support, and in a rare Oval Office address, Joe Biden said the debt ceiling bill saved the country from economic collapse.
Joe Biden said the deal that resolved the impasse between Democrats and Republicans was a compromise that didn’t get everyone what they wanted, but we averted an economic crisis.
He said that Congress has now secured the full trust and credibility of the United States, however, the House and Senate put aside their differences and finally came together to implement the agreement last week.
Ratings agency Fitch said it was maintaining the US’s ‘Triple A’ credit rating at negative despite the deal.
Note that setting the debt ceiling is generally considered a non-controversial mechanism approved annually by Congress, allowing the government to borrow money to pay bills that have already been spent. .
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2024-08-14 18:52:56
