Congress to temporarily raise US debt ceiling

The United States’ debt limit will be raised by $ 480 billion, allowing the country to honor its payments until December.

The US House of Representatives is due to vote on Tuesday in favor of raising the US debt ceiling until December, an expected respite in an endless and stressful saga for the world’s largest economy. With Democrats having a relatively comfortable majority in the lower house, the text has every chance of being approved within the day, before being sent in the wake to Joe Biden who will sign the text immediately, the week reported. last White House spokeswoman Jen Psaki.

Its entry into force will raise the debt limit of the United States by 480 billion dollars and thus allow the country to honor its payments until the beginning of December, or even the very beginning of 2022, removing the prospect of a default. payment with catastrophic consequences for the mega power and the rest of the world. This chip jump was not carried out without a crash, the text having been the subject of endless palaver in the Senate which had finally approved a compromise last Thursday.

«We cannot allow partisan politics to hold our economy hostage, and we cannot allow the routine of paying our bills to turn into a political showdown, undermining confidence, every two years or every two months.Jen Psaki had fumed in the face of opposition from Republicans. They refuse to approve any long-term measure to raise the debt ceiling, because they claim that this would amount to giving Joe Biden a blank check to finance his vast investment plans. These plans have yet to be passed by Congress, however, so raising the debt limit serves to repay sums already borrowed, including trillions of dollars spent under the Trump presidency.

Parliamentary battle

Senate Republican Leader Mitch McConnell urges Democrats to reach – on their own – a lasting solution by December through a complex legislative path. But the camp of President Joe Biden so far refuses to use this maneuver “too riskyFor the debt. The text to be approved on Tuesday therefore only postpones until the end of November a parliamentary battle that promises to be epic over the finances of the United States. And the high probability of seeing the United States plunged back into the same problem in December is far from reassuring institutions or the markets.

December “is a short time” and “uncertainty remains in the longer term“, Judged Treasury Secretary Janet Yellen on CNN last week. House Democrat Leader Nancy Pelosi warned Tuesday before the vote: if the debt ceiling was not raised in the long term, the impact would be “huge“And the United States would know in particular”a loss of six million jobs».

«Failure to pay would send shock waves through global financial markets», She maintained. Nancy Pelosi also expressed her hope to achieve a long term solution with “the participation of both parties“. But in the meantime, she added, “we are going to pass a law today that will take us until December, with the hope that people will then realize the stakes».

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