United States | With his signature, Biden ended weeks of debate about the debt ceiling

The agreement was approved in the House of Representatives and the Senate earlier this week.

of the United States president Joe Biden signed the law on raising the country’s debt ceiling on Saturday and thus ended the weeks-long dispute over the matter.

Biden and House Speaker, Republican leader by Kevin McCarthy the negotiated agreement was approved in the House of Representatives and the Senate earlier this week.

If an agreement on raising the debt ceiling had not been reached, the United States would have drifted into insolvency at the beginning of the week. The United States would then default on its debt servicing costs for the first time in its history.

According to Biden, who spoke to the United States via video local time on Friday, drifting into insolvency would have been catastrophic.

“Nothing would have been more irresponsible. Nothing would have been more catastrophic,” Biden said.

If the country would have drifted into insolvency, the US economy would have drifted into recession according to Biden. Insolvency would also have wreaked havoc on millions of US retirement savings.

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“Eight million Americans would have lost their jobs,” Biden said.

The US credit rating would also have suffered, and according to Biden, this would have led to an increase in the cost of housing and car loans as well as federal funding.

“It would have taken years to get out of that hole,” he said.

Credit rating company Fitch said Friday it plans to keep the U.S. AAA rating on watch despite the deal. Fitch placed the country’s credit rating on watch in May, in the middle of the debt ceiling negotiations, in case it is necessary to lower the rating.

The deal to raise the debt ceiling negotiated by Democratic President Biden and House Speaker Kevin McCarthy was approved by the House and Senate earlier this week.

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