On Thursday, President Joe Biden signed the bill pushed by Congress to raise the debt ceiling by $480 billion, an amount that will allow the country to meet its commitments until December.
Biden’s signature on the bill also avoids an imminent default on the debt, which was scheduled for October 18 at the earliest.
According to the White House, the legislative bill “is expected to be sufficient to allow the federal government to continue to meet its full commitments through early December”.
The issue of indebtedness had become in recent weeks a thriller in Washington, where disagreements between Democrats and Republicans had placed the country on the brink of default for the first time in its history.
Last Friday, however, the two parties reached a minimal agreement to raise the debt ceiling, which was approved first in the Senate and this Tuesday in the House of Representatives by the Democratic majority.
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This is a solution that fails to satisfy the Democrats and Biden himself, who wanted to suspend the debt ceiling until the end of 2022 so as not to have to deal with this issue during next year’s legislative elections.
The Republicans, for their part, have warned that in December they will not collaborate again to raise the debt again and are calling for greater fiscal responsibility.
The United States has never had to declare a default on its national debt, but it came very close in 2011 during Barack Obama’s administration when the mere possibility of this happening unleashed chaos in the financial markets and caused the risk rating agency Standard & Poor’s to downgrade the country’s credit rating.