Biden signs debt limit bill, avoiding US default


Washington DC
US 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, US, June 2, 2023. REUTERS/Kevin Lamarque

Saturday, President Joe Biden signed a measure suspending the US government's $31.4 trillion debt ceiling, averting a first-ever default with only two days remaining.

Following tense negotiations between Vice President Biden and House of Representatives Speaker Kevin McCarthy, the House and Senate enacted the legislation this week.

The Treasury Department had warned that if Congress did not act by Monday, it would be unable to pay all its obligations.

Biden signed the measure at the White House a day after praising it as a bipartisan victory in his first-ever address to the nation from the Oval Office.

The bill signing closed to the press marked a low-key, symbolic conclusion to a crisis that plagued Washington for months, forced Vice President Biden to cut short a trip to Asia, and threatened to drive 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," said the White House in a statement announcing the signing of the measure, naming the Democratic and Republican leaders of the House and Senate.

Later, White House officials released a 10-second recording of Vice President Biden signing the document in silence.

Biden stated on Friday, "It was essential to reach an agreement, and this is excellent news for the American people." "No one received everything they desired. However, the American people received what they required.

The measure was approved by a vote of 314 to 117 in the Republican-controlled House and 63 to 36 in the Democratic-controlled Senate.

Despite the agreement allowing the government to satisfy its obligations, Fitch Ratings said on Friday that the United States "AAA" credit rating would remain on negative watch.

Publish : 2023-06-04 13:41:00

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