US debt ceiling bill signed into law, extending debt limit to 2025

By Al Mayadeen English
Source: Agencies
3 Jun 2023 23:11

Biden said that the bill saved the country from economic collapse.

President Joe Biden pauses before addressing the nation on the budget deal that lifts the federal debt limit and averts a U.S. government default, from the Oval Office of the White House in Washington, Friday, June 2, 2023 (AP)

US President Joe Biden on Saturday signed into law a bipartisan debt ceiling bill, narrowly averting a $31 trillion debt default that would have shaken the world's biggest economy had the bill not been signed before June 5.

The law, titled Fiscal Responsibility Act of 2023, grants the government authorization to extend the debt ceiling to renew borrowing and allow the government to meet its obligations.

On Friday, Biden said that the bill saved the country from "economic collapse," adding that the bill was the result of a bipartisan compromise where "no one got everything they wanted," he said as he spoke from behind the historic Resolute Desk on live primetime television.

However, "we averted an economic crisis," he noted.

WATCH: President Joe Biden declared a ‘crisis averted’ in his first address from the Oval Office as he touted the passage of a bill to raise the US debt ceiling and curb spending https://t.co/b9zVDKlKQE pic.twitter.com/a0vQ8kKXmr
— Reuters (@Reuters) June 3, 2023

He thanked Republicans for negotiating in good faith and said that Congress has preserved "the full faith and credit of the United States."

Despite the deal, the US and its economy's reputation have been badly affected by these events.

On Friday, rating agency Fitch said that it is keeping the US' "AAA" credit rating on negative watch.

This comes in the backdrop of a recent ministerial summit held in Cape Town, South Africa, for the BRICS+ organization, where foreign ministers met to discuss plans of challenging the US and its dollar supremacy.

This would involve the creation of an alternative financial market and global currency that will serve to shield the group's New Development Bank from the nefarious impact of US sanctions.

One of the measures would involve admitting new members into the bloc, with countries such as Iran, Venezuela, and interestingly Saudi Arabia as well, expressing interest in joining the organization.