US Senate also agrees to raise debt ceiling

Reuters Senate Majority Leader Chuck Schumer and other senators after the vote

NOS Nieuws•vandaag, 06:08

A majority of the US Senate has voted to raise the federal debt ceiling. A large majority of both Democrats and Republicans voted in favor.

The proposal states that the debt burden may exceed the previously set ceiling of USD 31.4 trillion (converted to more than EUR 29 trillion) until January 1, 2025.

This has prevented a situation in which the United States would run out of money.

President Biden called it a “major victory for our economy and the American people.” Biden can now sign the law. The deadline is June 5, from then on the payments from the state could no longer be made in full and on time.

On Saturday, he and Republican Speaker of the House of Representatives Kevin McCarthy reached a tentative deal. The House of Representatives approved it yesterday.

An agreement on the debt ceiling is also important for the rest of the world. Without a deal, consumer confidence could fall, resulting in less spending. This would also have consequences for foreign companies and the stock exchanges.

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