Preventing a catastrophic debt default

US President Joe Biden signed into law a bill raising the national debt ceiling to more than $31.4 trillion, which will avoid the country defaulting on its debts.

And US senators voted to raise the federal debt ceiling on Thursday, at the end of painstaking negotiations to address the threat of a catastrophic debt default, just four days before the deadline set by the Treasury Department.

Biden addresses the nation

And Biden said that there is nothing more irresponsible and catastrophic than a US default.

Addressing the nation from the Oval Office, Biden said: “I want to thank Speaker McCarthy… You know, he and I, we and our teams, we got along and hit the mark. We’ve been honest with each other, completely honest and respectful of each other… on both sides.” He acted in good faith. Both sides delivered on their promise. I want to thank the members of Congress who voted to pass this agreement, which I will sign on Saturday. , into law.”

Agreement details

According to the agreement, US government spending will be cut and the curtain on the debt ceiling crisis will be lowered even after the US presidential election at the end of next year.