US Congress approves raising debt ceiling |  News

The House of Representatives raised the debt ceiling of the United States to $ 480 billion, which will prevent the bankruptcy of the federal government at least until December 3.

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The measure will allow the United States to honor its maturities until December, or even until the beginning of 2022, removing the prospect of a default with catastrophic consequences for the country and the rest of the world.

The bill, approved by the Senate last week, now travels to President Joe Biden’s desk for signature and enactment to prevent the administration from defaulting.

The legislation, which passed the House of Representatives with a vote of 219-206, was the result of an agreement between Congressional Democrats and Senate Minority Leader Mitch McConnell.

McConnell publicly submitted a debt ceiling proposal as an offer to Democrats, a move that sparked negotiations between the two parties.

The United States has never had to declare the suspension of payments on its national debt, but it came very close in 2011, when the mere possibility of that happening unleashed chaos in the financial markets.

Suspensions or extensions of the debt ceiling do not authorize new government spending, but allow the Treasury Department to pay appropriations that Congress has already approved.

The Secretary of the Treasury, Janet Yellen, had warned that this measure should be approved to avoid a default on the country’s debts by October 18, and that from that date the Treasury would not have the funds to meet financial obligations of the government.

The president’s top economic adviser said in early October that she would “fully expect” a recession in the United States if the government ran out of means to pay its bills and triggered an unprecedented default.

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