At last, Joe Biden has signed the debt ceiling bill to avoid a catastrophic default on the federal government’s debt. The signing of the debt ceiling bill took place at the White House, and Biden took a sigh of relief and expressed gratitude to Congress leaders for their support and collaboration.
Department of Treasury has warned USA would face a cash shortage to pay its bills, which would badly affect the US and the global economy. The standoff between Republicans and Democrats related to spending cuts led to intense talk between the White House and House Speaker Kevin McCarthy.
The final agreement that House and Senate pass suspends the debt limit until 2025 and restricts government spending. Budget targets are also set for the next two years to ensure fiscal stability during the upcoming political season.
Raising the debt limit, which is currently at $31.4 trillion, allows the government to borrow money to handle its previous debts. Default on the debt creates a severe crisis and makes this legislation more crucial.
Biden Highlight the importance of the consensus and compromises achieved through the agreement. He also highlights the importance of averting economic crises and collapse, acknowledging that while no one got everything they wanted, the American people received what they needed.