U.S. Senate approves temporary lift to debt ceiling, averting default

Economy10 minutes ago (Oct 07, 2021 08:43PM ET)

2/2
(C) Reuters. The sun sets behind the U.S. Capitol building in Washington, U.S., October 6, 2021. REUTERS/Leah Millis

2/2

By Richard Cowan and Makini Brice

WASHINGTON (Reuters) – The U.S. Senate on Thursday approved legislation to temporarily raise the federal government’s $28.4 trillion debt limit and avoid the risk of a historic default later this month, but it put off until early December a decision on a longer-lasting remedy.

The Senate voted 50-48 to pass the bill following weeks of partisan fighting.

The $480 billion increase to the current $28.4 trillion debt limit is expected to be exhausted by Dec. 3, the same day that funding for most federal programs also expires under a stop-gap measure passed earlier this month following another partisan standoff.

That means that over the next eight weeks, the bitterly divided Congress will have the twin challenges of finding a middle ground on agency spending through September 2022 — ranging from education and foreign aid programs to immigration enforcement and airport security — and avoiding yet another debt limit meltdown.

The vote followed a months-long standoff bringing the nation close to the Oct. 18 date that the Treasury Department forecast it would no longer be able to meet its obligations.

“Republicans played a dangerous and risky partisan game and I am glad that their brinksmanship did not work,” Senate Majority Leader Chuck Schumer said after the vote.

The Senate-passed bill now goes to the House of Representatives, where it is expected to be approved. It was unclear how quickly the House might act.

U.S. Senate approves temporary lift to debt ceiling, averting default

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Volkswagen CEO: we will keep up with Tesla but not without cuts

Sign In/Free Sign Up 0 Stock Markets13 minutes ago (Oct...

Subscribe to our stories

Join the exclusive subscription today and get premium articles for free

Same Category

Volkswagen CEO: we will keep up with Tesla but not without cuts

Sign In/Free Sign Up 0 Stock Markets13 minutes...

France seizes British trawler in post-Brexit row over fishing rights

World17 minutes ago (Oct 28, 2021 04:36AM ET) (C) Reuters....

German labour market continues post-pandemic recovery

Economy42 minutes ago (Oct 28, 2021 04:11AM ET) (C) Reuters....