Pres. Biden signs debt ceiling bill that pulls US back from brink of unprecedented default

The US nation signed a new debt ceiling deal with just two days before the June 5th deadline when the government would have run out of money.  As the President signed the deal, he praised the bipartisan compromise. President Biden signed legislation on Saturday to raise the debt ceiling. The bipartisan measure passed by both chambers of Congress earlier that week averted an unprecedented government default.

President Biden stated… "The stakes could not have been higher if they had failed to reach an agreement on the budget. There were extreme voices threatening to take America for the very first time in its 247-year history into default on their national debt. Nothing would have been more irresponsible."

The agreement will suspend the debt ceiling for two years past the 2024 presidential election while limiting federal spending. It puts new work requirements on some Americans receiving food assistance and in August formally ends the pause on federal student loan payments. However, taxes on the wealthiest Americans or big corporations, a key demand from the White House, were not included.

It's the only way American democracy can function through compromise and consensus, and that's what President Biden aims to do as the leader. To forge bipartisan agreement, where it's possible and required, has been his promise for months as President. Although the President had insisted he would not negotiate on the debt ceiling, with the June 5th deadline looming and millions of American Social Security Medicare and veterans benefits in jeopardy, he and House Speaker Kevin McCarthy worked out a last minute deal. "I think we did pretty dang good for the American public."

However, the economy still faces big troubles. Credit rating agency Fitch cites repeated political standoffs over the debt limit and says the U.S is at risk of a credit rating downgrade. This would make borrowing more expensive and potentially send the stock market tumbling.