The leader of the democratic majority in the US Senate Chuck Shumer declared on October 7 that the party had concluded an agreement to increase the ceiling of public debt by 480 billion dollars, writes the Hill newspaper. According to the Ministry of Finance, the decision will be valid until December 3. This step allowed the United States to prevent the first in the history of the country default on the public debt.
“The path to which our colleagues-Democrats went, will save the American people from the short-term crisis,” commented the leader of the Senate Minority of the Republican Mitch McConnell. Previously, he stated that the Republican Party of the United States would allow Democrats to go on a short-term increase in the debt ceiling if the measure would be temporary. McConnell added that the transaction in the Senate “will give the United Democratic Government more than enough time to make separate legislation on debt limit.”
The Agreement of the Senate dated October 7 should be approved by the Chamber of Representatives (Lower Congress Chamber), before it is aimed at signing President Joe Biden. The US Congress should raise the debt ceiling until October 18.
In the afternoon, Biden called on the Republicans to vote for the increase in the limit of the US public debt. Party member for a long time opposed this measure due to a potential increase in government spending, but the Ministry of Finance declared the need for decisive actions and established a period of October 18. The transaction has already caused a negative reaction from the former president of Donald Trump and his supporter, Republican Senator Lindsay Graham.
About the threat of default in June, the Minister of Finance of the Country of Janet Yelevlen said. Then the head of the department encouraged to increase the liberal limit as soon as possible to avoid catastrophic consequences for the economy. In her opinion, default can “strengthen the financial crisis, jeopardize the jobs and savings of Americans” while the American economy still has not yet recovered from the effects of a pandemic and locked.