Narrow vote in Congress: US Senate votes for higher debt ceiling

The global economy could also suffer from a default by the US – after a vote in the Senate, the debt limit will now be raised by 480 billion US dollars for the time being. It is the tentative end to a bitter dispute between Democrats and Republicans.

An impending default by the US government is most likely averted, at least temporarily. The US Senate approved raising the debt ceiling by $ 480 billion by December. The vote on the agreement was narrow with 50 to 48 votes along the party lines – no Republicans joined the Democrats. However, the increase could only be put to a vote beforehand with the help of the Republicans. The House of Representatives also has to agree.

This was preceded by violent quarrels between Democrats and Republicans – they blame each other in the highly dangerous conflict, which could have serious consequences for the global economy. The two parties reached a temporary agreement on Thursday. The problem has only been postponed. There are still arguments about how a solution beyond December could look like.

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Treasury Secretary Janet Yellen had warned of a possible financial crisis and recession should the US government fail to service its debts for the first time. According to your ministry, the US would have run out of money on October 18, in less than two weeks.

Senate minority leader Mitch McConnell offered on Wednesday not to block an emergency increase in the debt ceiling to a certain amount until December. The current limit is $ 28.5 trillion. The Ministry of Finance has been taking “extraordinary measures” since July to prevent a payment default.