This Thursday, the US Senate approved an agreement to raise the debt ceiling through December in order to prevent possible defaults by the government.
With that, the US House of Lords has approved this measure with 50 votes in favor and 48 against, which now also has to be passed in the House of Representatives, which is expected to happen in the next week, take the CBS News network on.
Thus, this project increases the “debt ceiling” by $ 480,000 million – more than € 415,000 million – and allows the President’s administration, Joe Biden, to bill its accounts by December 3rd.
The Senate majority leader, Democrat Chuck Schumer, had previously announced an agreement with the Republican Party. “I have good news … we have an agreement to extend the debt ceiling to early December and we hope to sign it today,” he said.
So far, Republicans had blocked the Democrats’ efforts to suspend the “debt ceiling” by a simple majority vote in the Senate, which meant 60 votes were required to implement the move, a number of senators that the Democratic Party did not want to have reached.
Therefore, the deal was reached thanks to the fact that Senate Republican leader Mitch McConnell proposed an interim solution to avoid government defaults.
Republicans and Democrats had raged on for weeks over raising the government debt ceiling, which was expected to run out of emergency resources on October 18, with the risk of being unable to meet their obligations beyond that date.
Treasury Secretary Janet Yellen even warned that raising the country’s debt ceiling would plunge the economy into recession.
“It would create a recession,” Yellen said in an interview with CNBC, in which he stated that “not paying the government bills would be disastrous,” which would undermine the United States’ credibility.
“The securities issued by the US Treasury Department are considered the safest commodity in the world and support the dollar as a world reserve currency. To question this by not paying our bills would be disastrous, ”he said.
THE WHITE HOUSE APPROVES APPROVAL
White House spokeswoman Jen Psaki hailed the Senate’s approval of the debt ceiling hike and celebrated that it was “a step forward” to “avoid a default that would have been devastating” to the economy of the “working class” families Country.
He has stated that Biden hopes to sign the bill “as soon as it is approved in the House of Representatives” and has stressed that the president’s attention “remains on the” task of getting his economic program approved and done quickly ” Investments. Critical to jobs, competitiveness and lower returns for the middle class. “
“These votes underscore that raising the debt ceiling is a shared responsibility to pay off the past debt of presidents and congresses of both parties that recognized that eleven Republicans this Thursday” put an end to filibusterism have “by allowing the action to be approved.
“With the months ahead, we hope that more Republicans will join the Democrats in tackling the debt ceiling responsibly, rather than opting for late payment or obstruction,” he appealed, stressing that “there should be no doubt that the United States will do this.” “. pay his bills. “
Finally, he called for “not allowing the US economy to be taken hostage by party politics” or “routinely paying bills every two years or two months into a political confrontation that shakes confidence.”