United States: Joe Biden ratifies debt ceiling law

by Trevor Honeycutt

WASHINGTON (Reuters) – US President Joe Biden on Saturday signed into law legislation that provides for a temporary suspension of the US debt ceiling, dispelling the specter of a catastrophic default.

The House of Representatives and the Senate passed the bill on Wednesday and Thursday, respectively, after tense negotiations between Joe Biden and House Speaker Kevin McCarthy reached an agreement.

Essentially, the agreement provides for the suspension of the US debt ceiling until January 1, 2025, that is, after the presidential election in November 2024. It also sets limits on public spending for the next year and in 2025.

The Treasury Department warned that the federal government would no longer be able to make payments through June 5.

“Getting a deal was important, and it’s really good news for the American people,” said Joe Biden, who signed the legislation at the White House. He said, “Nobody got everything they wanted. But the American people got what they needed.”

Ratings agency Fitch announced on Friday it was maintaining the United States’ “AAA” rating “under negative watch” despite the agreement that would allow the government to meet its obligations.

(Reporting by Trevor Hunnicutt with contributions by Eric Beech and Nick Ziminski; French edition by Kate Enstringer)