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Biden signs debt limit bill into law, averting default

US President Joe Biden on Saturday signed a bill to raise the debt ceiling into law, the White House said, writes DW.

The signing of the Fiscal Responsibility Act suspends the debt limit to renew borrowing and avoid a default that would have likely had damaging implications for the American and global economies.

The bipartisan deal came after months of political wrangling.

The Senate earlier this week passed the bill to raise the debt ceiling and cap government spending for the next two years. The nation's debt currently stands at around $31 trillion (€29 trillion), which Republicans say is unsustainable.

Republicans, who currently enjoy a majority in the House of Representatives, had refused to raise the debt ceiling unless Biden and the Democrats agreed to federal spending cuts.

Carolina Străjescu

Carolina Străjescu

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