US Senate reaches short-term deal on debt limit, averting crisis
Al Jazeera
Democrats and Republicans agree to suspend the limit on US Treasury’s ability to issue new debt until early December.
Democrats and Republicans in the United States Senate have agreed to a short-term increase in US borrowing authority, averting a potential financial crisis.
The announcement by a top legislator on Thursday came after lawmakers had been at odds on Capitol Hill for several days, as Democrats pushed to raise the debt limit in the face of staunch opposition by Republicans, who refused to go along with the proposal because they oppose President Joe Biden’s spending plans.
Top US officials had warned the government would run out of cash and be unable to pay its debts by October 18 unless legislators passed a law raising the amount of debt the Treasury Department can issue.
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