US House Passes Debt Ceiling Deal as Default Threat Looms

Introduction The United States House of Representatives recently passed a critical debt ceiling deal in a race against time to avert a potential default. As the country's borrowing limit approached, lawmakers had been engaged in intense negotiations to find a solution that would prevent a financial crisis with far-reaching global implications. This article delves into the details of the debt ceiling deal and examines the significance of averting a default for the US economy and the world at large. The Debt Ceiling Crisis The debt ceiling is a statutory limit set by the US Congress on the amount of debt that the federal government can accumulate. The previous debt ceiling, reinstated on August 1, 2019, was suspended temporarily to allow the government to borrow funds and meet its obligations. However, this suspension was due to expire on July 31, 2021, raising concerns about a potential default if the limit was not raised or suspended again. The Debt Ceiling Deal In an effort to add...