Biden, a Democrat, said he will sign the package into law on Saturday, putting an end to months of uncertainty and preventing a first-ever US default as early as June 5.
Biden, a Democrat, said he will sign the deal into law on Saturday. US President Joe Biden hailed a “crisis averted” in his first address from the Oval Office on Friday, hailing the approval of a package to extend the US debt ceiling and escape economic disaster.
In a significant development, US President Joe Biden, a Democrat, announced his intention to sign the package into law on Saturday, marking an end to months of uncertainty and effectively preventing a first-ever US default, which was looming as early as June 5. Speaking from the Oval Office on Friday, Biden addressed the nation, hailing the approval of a comprehensive package to extend the US debt ceiling and escape an impending economic disaster.
During his address, Biden emphasized the importance of unity, urging Americans to view each other as fellow citizens rather than adversaries. He pointed to the deal he struck with top House Republican Kevin McCarthy as evidence of what can be achieved when political leaders work together. By successfully putting an end to months of uncertainty and averting the imminent US default, Biden highlighted the significance of cooperation in overcoming challenges.
The president expressed his satisfaction with the agreement, stating, “Agreement was critical, and it’s very good news for the American people. Nobody received everything they wanted. But the American people received what they needed.” Seated at the iconic “Resolute Desk” in the Oval Office, Biden emphasized that the deal has averted a financial crisis and prevented an economic collapse, thus securing a more stable future for the nation.
Following tense discussions, both the Senate and the House of Representatives passed a bill this week to suspend the government’s $31.4 trillion debt cap. Biden underscored the importance of maintaining the country’s full confidence and credit, emphasizing the high stakes involved in preserving economic development in the United States. Reflecting on the bipartisan nature of the deal, Biden praised McCarthy, the House Speaker, as his principal bargaining partner, despite their political differences.
It is worth noting that McCarthy, a Trump supporter, was one of the Republicans who voted unsuccessfully to overturn Biden’s victory in the 2020 election. However, in the spirit of collaboration and operating in good faith, both sides were able to work together to reach an agreement.
For months, Republicans had refused to raise the debt ceiling, demanding that Biden and Democrats reduce spending in the 2024 budget. Before initiating discussions, the White House insisted on a clear debt ceiling agreement. Finally, Biden and McCarthy managed to forge a last-minute accord that not only suspends the debt ceiling but also establishes expenditure controls until January 2025.
The bill received overwhelming support in both chambers of Congress, with a vote of 314 to 117 in the Republican-controlled House and 63 to 36 in the Democratic-controlled Senate. This resounding approval demonstrated the recognition of the urgency and gravity of the situation.
Despite the resolution that allows the country to fulfill its financial obligations, Fitch Ratings declared on Friday that the United States “AAA” credit rating would remain under review, highlighting the need for continued fiscal responsibility and careful management of the nation’s finances.
The decision for President Biden to address the nation from the Oval Office underscores the magnitude of the situation if the debt ceiling was not increased. Traditionally, US presidents reserve such addresses for major and dramatic events. Previous Oval Office addresses include Ronald Reagan following the Challenger space shuttle explosion in 1986, George W. Bush after the September 11, 2001 attacks, and Barack Obama during the 2010 BP oil spill on the Gulf Coast.
Although President Biden has previously spoken at prime time hours, delivering State of the Union addresses from the Capitol and speeches from the White House East Room during the COVID-19 epidemic, this Friday night address marks his first from the Oval Office. This historic address serves as a testament to the power and authority of the presidency as Biden continues his journey towards a potential second term, amidst a growing field of Republican hopefuls.
Biden Signs Package into Law: Averting First-Ever US Default
On Tuesday, President Joe Biden signed legislation to extend the US debt ceiling by $480 billion, preventing the country’s first-ever default on its debts.
The law, which passed the House by a vote of 221-213 on Monday and the Senate by a vote of 50-48, will allow the Treasury to continue borrowing money to pay its obligations until December 31, 2023.
The agreement was bipartisan, with 11 Republicans supporting the bill in the House and 13 supporting it in the Senate.
The debt limit is the maximum amount that the federal government can borrow. The United States has never defaulted on its debt, and such a default would have been disastrous for the economy.
The debt-ceiling deal was a big success for President Biden, who had been warning for months that the country would fail if Congress did not act.
The agreement also symbolizes a rare instance of cooperation in Washington, D.C., where the two parties have grown increasingly polarised in recent years.
The debt limit must be increased one more before December 31, 2023. It is unknown if Congress will be able to achieve another bipartisan debt-ceiling increase at that time.
If Congress does not act, the US may face another debt catastrophe.
Preventing Economic Collapse: Biden Puts an End to Months of Uncertainty
President Biden has ended months of doubt about the country’s financial destiny by signing the measure. The agreement will allow the government to continue borrowing money and paying its debts, preventing a recession and protecting millions of jobs.
The agreement is a positive indication for the economy, but it is not a long-term solution to the debt ceiling crisis. Congress will need to find a way to alter the debt ceiling so that it does not become a future danger to the economy.
Meanwhile, the agreement will bring some solace to companies and consumers who have been concerned about the likelihood of default. It will also contribute to the restoration of trust in the US economy, which is critical for attracting investment and creating employment.
FAQS:
Which president had the highest rate of inflation?
Carter, Jimmy (1977-1981)
He had the highest inflation rate and the third-highest unemployment rate, though.
What exactly is Biden’s climate plan?
Getting the Power Sector to Net Zero Emissions
President Biden has set an ambitious target for the United States to have a carbon-free power sector by 2035 and a net-zero-emissions economy by 2050.
What contribution did Joe Biden make to the economy?
His Inflation Reduction Act was signed into law in August 2022. In Biden’s first year in office (2021), real GDP, earnings, employment, stock market returns, and household net worth all increased, although inflation increased. The unemployment rate averaged 3.6% in his second year (2022), the lowest since 1969.
What is the approval rating of Bidens?
The three-day poll, which concluded on Sunday, found Biden’s popularity to be somewhat higher than it was last month when 39% of respondents said they approved of his job as president.
What has Biden done to promote environmental sustainability?
The Administration is delivering 40% of the overall benefits of federal climate, clean energy, affordable and sustainable housing, clean water, and other investments to disadvantaged communities that are marginalized and overburdened by pollution through President Biden’s Justice40 Initiative.