The U.S. Senate voted to raise the national debt limit of the United States by $480 billion, it became known on Thursday, October 7.
According to estimates of the U.S. Treasury Department, it will cover national spending until December 3.
The White House said that U.S. President Joe Biden would sign the initiative as soon as it was approved by the House of Representatives of Congress, but the lower chamber would return to work only in the second half of the month.
At the same time, the possibility has been voiced that congressmen could return to Washington next week as well. The vote of the chamber was broadcasted on its website.
On October 6, the president of the USA compared the situation around the national debt ceiling of the USA to a meteor which threatens to hit the national economy. He also criticized the Republican Party, which opposes the Congress’ approval of the initiative to raise the national debt ceiling or to stop the borrowing limit.
On September 28th the U.S. Treasury Department warned about the risk of default in the country in case of refusal to raise or freeze the national debt limit. According to the head of department, Janet Yellen, if this does not happen, in October the U.S. Treasury reserves will be exhausted, the economy will enter into recession and the country as a state will weaken.
On August 1, restrictions on the size of the U.S. government debt came back into force. They have not been in force for two years. At that time the country’s debt already exceeded its GDP, and in June this year it reached $28.5 trillion. The limit was restored at $22 trillion.