To avoid an historic default, the US Senate has now voted to temporarily raise the nation’s debt limit to avoid catastrophic circumstances for the economy. Senators have agreed to raise the limit by $480bn (£352bn), which will cover the US until early December.
According to the BBC, “the breakthrough came less than two weeks before the US was set to be unable to borrow money or pay off loans for the first time ever.” The bill was finally approved with a vote of 50-48 senator votes, which will next need to be approved by the House of Representatives, before finally being signed off as law by President Joe Biden.
Senate Republicans have claimed previously that an increase in the debt limit is the “sole responsibility” of Democrats, due to the power they hold in the White House and both chambers of Congress.
The BBC also stated that Republicans are “frustrated by new spending proposals the Democrats are trying to push through without Republican support.”
Republican Senate leader Mitch McConnell previously offered his support for a short-term extension, after tweeting that his party would “not facilitate another reckless, partisan taxing and spending spree”.
The Democrats’ Senate Majority leader Chuck Schumer, spoke after the vote to point out that Republicans had “played a dangerous and risky partisan game. What is needed now is a long-term solution, so we don’t go through this risky drama every few months.”
Many senior Republicans still disagreed with Mr McConnell’s decision to strike a deal with Mr Schumer and viewed the deal as admitting defeat.
US lawmakers will still have to address this issue near the new December deadline to avert a default, which could seriously damage the country’s credit rating, cause disruption for the global financial system and even result in a self-inflicted recession.
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