US House Passes Temporary Debt Ceiling Increase... Default Averted

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] The U.S. House of Representatives passed a bill to raise the federal government's debt ceiling by $480 billion (approximately 571 trillion KRW) until early December, thereby averting a federal government default crisis.

According to the Associated Press (AP) on the 12th (local time), the House voted on the debt ceiling increase bill and passed it with 219 votes in favor and 206 against.

With the U.S. Congress passing the bill in the House following the Senate on the 7th, AP reported that President Joe Biden can sign the bill this week.

The bill primarily raises the current U.S. federal government debt ceiling from $28.4 trillion to about $28.9 trillion.

Earlier, Senate Democrats and Republicans agreed to temporarily raise the debt ceiling until early December and to prepare long-term measures during that period.

While the passage of this bill has temporarily eased the crisis, AP explained that the risk of default has not completely disappeared due to the busy congressional schedule and workload at the end of the year.

Having accepted the Democrats' demands for now, the Republicans warned that the postponed debt ceiling debate will not be any easier.

Republican Representative Tom Cole said, "The Republicans will not support raising the debt ceiling unless the Democrats abandon their dream of a massive government called 'Socialist America.'"

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