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Biden averts economic disaster by signing debt ceiling bill

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Biden averts economic disaster by signing debt ceiling bill

WASHINGTON – In his inaugural Oval Office address on Friday evening, President Joe Biden addressed the nation to discuss a significant bill aimed at raising the debt ceiling and imposing limits on federal spending. Describing the agreement as “critical,” President Biden highlighted the importance of this legislative measure. Subsequently, on Saturday, he formally signed the bill into law, solidifying its impact on the country’s financial stability.

With a sense of relief, President Biden acknowledged the outcome of the compromise debt ceiling bill, stating, “No one got everything they wanted but the American people got what they needed. We averted an economic crisis and an economic collapse.” The bill successfully cleared the Senate on Thursday evening, surpassing the required 60-vote threshold to avoid a filibuster with a 63-36 margin. It further gained momentum in the House, where it passed by a vote of 314-117 within approximately 72 hours on Wednesday.

With little time to spare, the agreement to lift the debt ceiling arrives just in time as the Treasury Department projected that the federal government would have run out of funds on June 5 without this resolution. Stressing its significance, President Biden emphasized, “This is vital. Essential to all the progress we’ve made in the last few years is keeping the full faith and credit of the United States and passing a budget that continues to grow our economy and reflects our values as a nation.”

The agreement’s significance becomes even more evident as it avoided potential disruptions in federal obligations, including Social Security, Medicare, and military paychecks, that would have gone unpaid without its implementation. Furthermore, the failure to lift the debt ceiling could have triggered turbulence in global financial markets and resulted in job losses within the United States.

After weeks of rigorous negotiations between Republican House Speaker Kevin McCarthy and the White House, the bill has finally materialized. In a strategic maneuver, the final agreement secured several ideological policy wins for conservatives, serving as an incentive for their support in raising the debt ceiling. This extension of the debt ceiling will extend beyond the upcoming presidential election and extend into 2025.

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