By: MOS Education Team—正义的小新
The U.S. Senate passed a bill on Oct. 7 to temporarily increase the federal government debt ceiling by $480 billion to avoid the risk of a historic debt default this month and to buy time to find a longer-term solution.
U.S. Treasury Secretary Yellen warned earlier in the week that if the debt ceiling is not resolved, the Treasury’s cash and unconventional means are likely to run out by October 18, triggering a historical financial crisis.
The bill was passed by the Senate after weeks of bipartisan debate, with 50 votes in favor and 48 against, and will be sent to the federal House of Representatives for a vote, and if the House passes the bill, it will go on to the White House for President Biden’s signature.
House Speaker Nancy Pelosi said earlier that she would bring back members of the House who are on recess to vote, but no date has been set for the meeting.
If the bill is implemented, the total debt ceiling of the U.S. federal government will reach $28.9 trillion. Even so, government operations are expected to last only until Dec. 3. The pandemic has had a significant impact on the world economy, with governments printing excessive amounts of currency.
The global economy will surely face a huge uncertainty by the end of this year.
Posted by: Yuki jiang
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