The US averted a possible first-ever payment default, with President Joe Biden signing a bill that suspends the US government’s $31.4 trillion debt ceiling on Saturday.
The bill was signed when just two days were to spare before the X date for the default.
The House of Representatives and the Senate passed the legislation this week after Biden and House of Representatives Speaker Kevin McCarthy reached an agreement following tense negotiations.
Debt ceiling crisis ends with low-key bill signing
The Treasury Department had warned it would be unable to pay all its bills on Monday if Congress had failed to act by then.
The bill signing, which was closed to the press, marked a low-key, symbolic end to a crisis that vexed Washington for months, forced Biden to cut short an international trip in Asia and threatened to push the US to the brink of an unprecedented economic crisis, Reuters reported.
“Thank you to Speaker McCarthy, Leader Jeffries, Leader Schumer, and Leader McConnell for their partnership,” the White House said in a statement announcing the bill’s signing, naming the Democratic and Republican leaders of the House and Senate.
Officials later released a ten-second clip of Biden silently signing the document at the White House.
“It was critical to reach an agreement, and it’s very good news for the American people,” Biden said on Friday. “No one got everything they wanted. But the American people got what they needed,” he added.
Fitch Ratings, however, said on Friday the US’ ‘AAA’ credit rating would remain on negative watch, despite the agreement that will allow the government to meet its obligations.
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