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Biden signs debt limit bill, avoiding U.S. default

Published 06/03/2023, 01:53 PM
Updated 06/03/2023, 09:10 PM
© Reuters. FILE PHOTO: U.S. President Joe Biden delivers a speech on bipartisan legislation that lifts the federal government's $31.4 trillion debt ceiling, in his first Oval Office address to the nation at the White House in Washington, U.S., June 2, 2023. REUTERS/

By Trevor Hunnicutt

WASHINGTON (Reuters) -President Joe Biden on Saturday signed a bill that suspends the U.S. government's $31.4 trillion debt ceiling, averting what would have been a first-ever default with just two days to spare.

The House of Representatives and the Senate passed the legislation this week after Biden and House of Representatives Speaker Kevin McCarthy reached an agreement following tense negotiations.

The Treasury Department had warned it would be unable to pay all its bills on Monday if Congress had failed to act by then.

Biden signed the bill at the White House a day after hailing it as a bipartisan triumph in his first-ever Oval Office address to the nation as president.

The bill signing, which was closed to the press, marked a low-key, symbolic end to a crisis that vexed Washington for months, forced Biden to cut short an international trip in Asia and threatened to push the United States to the brink of an unprecedented economic crisis.

"Thank you to Speaker McCarthy, Leader Jeffries, Leader Schumer, and Leader McConnell for their partnership," the White House said in a statement announcing the bill's signing, naming the Democratic and Republican leaders of the House and Senate.

Officials later released a ten-second clip of Biden silently signing the document at the White House.

"It was critical to reach an agreement, and it's very good news for the American people," Biden said on Friday. "No one got everything they wanted. But the American people got what they needed."

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The Republican-controlled House voted 314 to 117 to approve the bill, and the Democrat-controlled Senate voted 63 to 36.

Fitch Ratings said on Friday the United States' "AAA" credit rating would remain on negative watch, despite the agreement that will allow the government to meet its obligations.

Latest comments

Sounds like fitch thinking about manipulating the markets
These group of dementia ridden men, soon will forget about their debt and continue to spend on military & proxy-wars around the world. 🤦
You should show some respect for your wiser elders and civil servants. What have you ever done for this country?
The notion that the corrupt US government deserves respect is laughable best an outright insane at worst.
Corrupt? Evidence?
Once the debt ceiling is officially lifted, the Treasury will rush to replenish its cash coffers and already plans a $123 billion T-bill auction on Monday.
Thank you Mr. BIDEN
Let the market liquidation begin! Time to repay pension funds...
Avoiding US default...continue to create more debt.
American people got what they needed? pile of debt!!
better than the huge Pile of BS they had after trumpy left office - made never met a lie he couldn't tell - welcome to Magadonia - right next to the front in russia
I.d.i.o.t.
If you can’t pay your bills without going deeper into debt, isn’t that still a default…
ask trump he gave the rich a huge tax cut and raised the debt by the most in any 4 yr period well ever  - sure is a good thing he never got much of that wall built or it would be much much higher - but hey mexico paid for what was built right! But good news Russia is building Magadonia for guys just like you - right next to the front comes with its own moat, gun and bullets
nope, default is when they can't pay at all.
is this what they told you to think?
Hyper inflation here to stay forever
Here comes higher taxes.
how this will efect the USD?
Let the market liquidity drain begin
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