2023-06-03 13:47:58
US President Joe Biden may sign the bill that regulates the increase in the debt ceiling on Saturday, a government spokesman said.
Now that the Senate has also approved a broader limit, US lawmakers must work out the final details of the proposal. Once that has happened, Biden can sign it almost immediately, according to the White House.
The debt ceiling determines how much the United States federal government can borrow. The Americans had already passed that limit this year and without adjustment, the Treasury Department would run out of money next Monday.
As a result, the US would no longer be able to pay many benefits, but also, for example, no interest on government debt. The latter would mean chaos on the financial markets.
Needs Republican approval
Democrat Biden and Republican Speaker of the House of Representatives Kevin McCarthy had already reached an agreement on the debt ceiling last Saturday. But that deal also had to get the approval of the US Congress, where the conservative wing of the Republicans in particular believed that more cuts were needed.
Now that both chambers of the House of Representatives have agreed, a next vote on a debt ceiling increase will not be needed until following the 2024 US presidential election.
Division can lead to a worse credit rating
Raising the debt ceiling is usually a routine job in the US, but tensions between Republicans and Democrats make it increasingly difficult. Credit rating agency Fitch has therefore become more gloomy regarding the financial health of the United States.
The rating agency now takes into account that the credit rating of the US government will soon be downgraded. Now the US still has the highest score. A lower score means that lending money to the US is seen as riskier, which means that Americans may have to spend more on interest rates.
1685805603
#White #House #thinks #sign #crucial #debt #deal #today #Economy
/s3/static.nrc.nl/wp-content/uploads/2025/01/05194225/web-0501BUI_farage.jpg "Elon Musk Turns Against Nigel Farage as Reform Leader on X")
