The White House announced that President Joe Biden has formally signed into law a bill to raise the debt ceiling. The bill passed Congress after weeks of bitter debate, also avoiding a catastrophic default.
After Biden signed the Fiscal Responsibility Act of 2023 into law today, Agence France-Presse reported. The bill would extend the government’s borrowing authority until 2024 while cutting federal spending.
Biden also made a rare speech to the American people from the Oval Office earlier. He mentioned that the debt limit bill passed by Congress after weeks of debate saved the country from “economic collapse.”
Sitting behind the historic “Resolute Desk” (Resolute Desk), Biden told the people in a prime-time televised live broadcast that the bill to untie the impasse between Democrats and Republicans was one that “no one is fully satisfied with.” compromise.
“We have avoided an economic crisis and an economic collapse … There is no higher risk,” he stressed.
The U.S. Treasury Department previously warned that the U.S. may default on its $31 trillion debt if the debt ceiling issue is not resolved by the 5th of this month. The US debt default may trigger market panic, mass unemployment and economic recession, with global impact.
But despite the timely passage of the bill, the credibility of the US economy has taken a hit. The international credit rating agency “Fitch” (Fitch) said today that although the United States has passed the debt limit bill, it still temporarily put the US’s AAA credit rating on the negative watch list.
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