The House of Representatives provided concluding approval on Tuesday to a Senate-passed bill. In the meantime, this will lift the debt limit of the adminisration to $28.9tn. Thus, this will alleviate the susceptibility of default at least until early December.
Democratic members, who narrowly dominate the House, maintained party discipline in order to pass the difficultly worked out $480bn boost in the debt limit. Along party lines, the result was yes from all Democrats and no from all the GOP. President Joe Biden is anticipated to sign the measure into law the current week prior to Oct. 18. The timing is when the treasury department has surmised it would no longer be able to pay the debts of the United States with no congressional action.
Short-Term Rise to Federal Debt Limit
The Senate the previous week approved a short-term lift to the federal debt limit with a vote of 50-48 following weeks of discussions was cast. Treasury Secretary Janet Yellen on Sunday cautioned of a large amount at risk if Congress does not make another negotiation. According to Yellen, not lifting the debt limit would possibly result in a recession and could even cause a financial crisis. She added that would be chaotic, reported Yeni Safak.
To Not Be In Doubt
According to Democratic House Speaker Nancy Pelosi prior to the casting of the vote, “It’s about the kitchen table, it’s about our economy, the global economy, but it’s also about our constitution which says the full faith and credit of the United States shall not be in doubt,” reported The Journal.ie. House Majority Leader Steny Hoyer made the Tuesday vote declaration. He stated it is appalling that the US has been placed in such a situation. He added they should take urgent action to tackle the debt limit and affirm the full credit and faith of the US remains unimpaired, reported Aljareeza.
What is the Debt Limit?
The American Congress restricts the total amount of borrowing that the United States government could borrow to pay for its expenses. The debt limit has been slowly lifted in the course of the decades. It went from an estimated $4tn in the early 1990s to $28.4tn in Aug. 2021.
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