The US House of Representatives also approves an increase in the debt limit after the Senate.
- The US House of Representatives has approved an increase in the debt ceiling. The Senate had already done this last week.
- This temporarily averted an impending default by the US government. The government now retains financial leeway until the beginning of December.
- A long-term solution is still a long way off.
The Chamber of Parliament agreed with a majority of Democrats on a corresponding proposal from the Senate last week. This should increase the debt ceiling by $ 480 billion. US President Joe Biden has yet to sign the law.
An impending payment default, which would probably have catastrophic economic consequences, has only been postponed. However, an agreement on how to proceed from December is not yet in sight.
The interim solution that has now been adopted was preceded by a violent dispute between Democrats and Republicans. The Democrats wanted to temporarily suspend the debt ceiling or raise it significantly. The Republicans opposed this, however. The struggle for a long-term solution should soon be back on the agenda.
Treasury Secretary Janet Yellen had warned of a possible financial crisis and recession should the US government fail to service its debts for the first time. According to your ministry, the US would have run out of money by October 18.
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