US Fends Off National Default Fears as Senate Approves Debt Ceiling Deal, Sends it to Biden
Curated By: Shankhyaneel Sarkar
Last Updated: June 02, 2023, 08:54 IST
Washington D.C., United States of America (USA)
The final vote of 63-36 shows passage of the bill to raise the debt ceiling Thursday night in the Senate at the Capitol in Washington. President Joe Biden is expected to quickly sign the bill that will stave off default. (Image: AP Photo)
After weeks of intense negotiations, the outcome puts aside the contentious debt ceiling issue, averting potential economic turmoil until 2025 and the next presidential election.
The US Senate approved the Fiscal Responsibility Act of 2023 late Thursday and sent it to US President Joe Biden’s desk, fending off fears of an US default, the Hill said in a report.
US President Joe Biden said that the deal was a big win for Americans. “Debt deal is a ‘big win’ for the economy and Americans,” Biden was quoted as saying by news agency AFP.
After intense discussions over the budget for the past few weeks, the decision puts aside the contentious debt ceiling matter, avoiding any potential harm to the US and global economy until 2025. The issue is unlikely to rear its head again until after the next presidential election.
Even though the US senators voted to suspend the federal debt limit, both camps, Republicans and Democrats, are not fully pleased with the outcome, US-based news agencies said in their report.
“America can breathe a sigh of relief. We are avoiding default,” Senate Majority Leader Chuck Schumer was quoted as saying by the Associated Press.
(this is a developing story, more details are being added)
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