A majority of US senators voted to raise the US government’s debt ceiling on Thursday. This is the first time in history that the United States is unable to meet its payment obligations.
Failure to raise the debt ceiling would cause major chaos in financial markets. The recall vote took place on Thursday evening, four days ahead of a deadline set by the US Treasury Department.
Now that even the Senate has agreed, another vote on raising the debt ceiling won’t be necessary until after the US presidential election in 2024.
Democratic President Joe Biden and Republican House Speaker Kevin McCarthy already reached an agreement on Saturday. Among other things, it said that the debt burden could rise above the previously set $31.4 trillion (more than EUR 29,000 billion) by January 1, 2025. The House of Representatives approved the loan agreement on Wednesday.
Biden tweeted Thursday night: “Nobody gets everything they want in a negotiation, but make no mistake: This deal between both sides is a huge win for our economy and the American people.” He added that he would sign the bill as soon as possible.
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