Senate approves US debt ceiling deal to avert default

The US Senate headquarters

The Senate approved on June 1 a bill to suspend the US debt ceiling to cap government spending until the 2024 elections, putting an end to a tragedy that could spark a global financial crisis.

The bill, which passed in a 63-36 vote, was sent to President Joe Biden to sign into law today, June 2.

“No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people,” Biden tweeted, adding that he would sign the bill “as soon as possible” and address the nation on Friday.

The move same only three days before the US risked its first-ever sovereign debt default.

Treasury Secretary Janet Yellen earlier said the government will not have enough money to pay all of its bills unless Congress acts to raise the debt ceiling by June 5.

Elsewhere, Moody’s said in a statement that the debt ceiling crisis solution matched its forecast, adding it does not consider to cut the US debt rating.