With a vote of 63 in favor and 36 against, the US Senate has successfully passed a bill to raise the debt ceiling, ensuring the continued efforts to prevent the world’s leading economy from defaulting.
This bill, officially known as the Fiscal Responsibility Act, was the result of an agreement between President Joe Biden and House Speaker Kevin McCarthy aimed at averting a debt crisis in the US.
During the voting session on the evening of June 1st in the US (morning of June 2nd in Vietnam), all 100 senators participated in the vote, passing the bill before the June 5-6 deadline. The bill effectively suspends the debt ceiling until January 1, 2025, removing the limit on the amount of money the US government can borrow to meet its financial obligations. The current US debt stands at $31.4 trillion.
The Senate vote resulted in 63 senators in favor and 36 against. According to Reuters, the bill will now be swiftly sent to President Joe Biden by the House of Representatives for his signature, thereby preventing a catastrophic debt default.
Chuck Schumer, the leader of the Democratic majority in the Senate, expressed relief, stating that the United States has successfully avoided a default situation. He further emphasized that a default would likely lead to another recession, becoming a nightmare for the economy and millions of American families. The recovery process, if a default occurred, would take several years.
With a narrow margin of 51-49, the Democratic Party controls the Senate. Senate rules dictate that a minimum of 60 votes is required to pass most bills, which means at least 9 votes from the Republican Party were needed to successfully raise the debt ceiling.
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