Joe Biden signs legislation to prevent US default and avoid economic catastrophe

Joe Biden has signed legislation in an effort to prevent a US default. The White House therefore announced the news this Saturday, after weeks of political tension over the matter. According to the statement, the US president thanked parliamentary officials for their “collaboration” on this file, including Republican House of Representatives boss Kevin McCarthy. The US Congress adopted this text during the week, making it possible to suspend the public debt ceiling of the United States until January 2025, and also to set certain budgetary objectives.

A political issue

Without the adoption of this law, the United States risked defaulting on Monday, June 5. A situation that would have been “catastrophic”Joe Biden said in a speech on Friday. “Finding a consensus across partisan divides is difficult. Unity is difficult. But we must never stop trying”he assured.

Behind this economic issue hides a political aspect as the 2024 American presidential election approaches. Joe Biden, 80, seems to hope that the promulgation of this law, avoiding bankruptcy in the United States, will reinforce an image of competent and reasonable leader for the country, despite questions about his age.

For his part, Kevin McCarthy no doubt hopes to strengthen his authority within a parliamentary group made up of both moderate Republicans and supporters of the very controversial Donald Trump. The latter is also a candidate for the presidential election.

At the end of the promulgation of this law, each side claims a victory. Democrats were happy to have preserved social benefits and major investments, while Republicans were happy to have pulled off a freeze on certain spending.