US President’s Announcement

US President Joe Biden said on Saturday that he will sign into the bill approved by Congress this week to raise the US debt ceiling and limit spending.

And Biden has declared that nothing would be more irresponsible and more catastrophic than a US default.

The measure that Biden will sign authorizes an increase in US government debt, which removes the “catastrophic” threat of default hanging over the world’s largest economy.

Commendations and Approval

Addressing the nation from the Oval Office, Biden said, “I want to commend President McCarthy… You know, he and I, us and our team, we got along and made things. We were honest with each other, completely honest and respectful of each other… both sides.” She acted in good faith. Both sides kept their promise… I want to thank the members of Congress who voted to approve this agreement, which I will sign on Saturday, in law”.

US senators voted on Thursday to raise the federal debt ceiling after arduous negotiations to avert the specter of a catastrophic default, just four days before the deadline set by the Treasury Department.

Economists’ Warnings and Senate Approval

Economists have warned that the US may not be in able to pay bills by Monday, leaving no room for delays in implementing the “Fiscal Responsibility Act” which extends government lending authority to 2024 by cutting federal spending.

And the Senate approved by a large majority (63 votes to 36) the provision that Biden reached with the Republicans, the day after its approval in the House of Representatives.

“Nobody gets everything they want in negotiations, but rest assured that this bipartisan agreement is a major victory for our economy and the American people,” Biden said. in a statement published on social media.

In turn, the leader of the Democratic majority in the Senate, Chuck Schumer, stressed that the country could now “breathe a sigh of relief” after avoiding a “catastrophic” economic collapse. He continued: “But after the many difficulties needed to reach this stage, it is good for this country that the two sides have finally agreed to avoid default.”

Conclusion

The bill, which will now be submitted to Biden for his signature to become law, has put an end to the debates between the leaders and representatives of the two parties, who continued to threaten its approval in light of the disagreements that lasted until last moments about the details.

Democratic leaders spent months focusing on the chaos that would cause the first default in history, including the loss of millions of jobs and $15 trillion in family wealth, as well as rising costs of mortgages and other forms of financial leverage.