Government bankruptcy averted: US debt drama coming to an end

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An imminent bankruptcy of the US government has been averted. After the House of Representatives, the Senate also approved a bill late Thursday evening (local time) that would initially suspend the federal debt ceiling in the United States. Without the move, the U.S. government’s money would run out in a matter of days.

The final vote in Congress brought to an end a long political nail-biter that had raised major concerns about an economic crisis in the US and beyond. To the end, President Joe Biden’s Democrats had fought bitterly with the Republicans to find a compromise.

A bankruptcy of the world’s largest economy could have sparked a global financial crisis and economic downturn. The political impasse in Washington had therefore caused unrest on the stock markets.

Biden has yet to sign

63 of the 100 senators now voted in favor of the bill, which would suspend the debt ceiling until 2025 and limit government spending for the next two years. Thus, the necessary majority in the Chamber of Congress was achieved. This ensures that the government does not go bankrupt in a few days.

US Treasury Secretary Janet Yellen (76) recently warned that this dramatic case could occur on Monday. So the solution only came about shortly before the deadline.

Now the law is being submitted to President Joe Biden (80) for signature for it to take effect. However, this is considered a formality. (SDA)

Source: Blick