The Senate "nodded" to raise the debt ceiling, America "breathed a sigh of relief"

Late on June 1 (US time), the Senate passed a bill to raise the public debt ceiling with a vote of 63-36 in a race against time after months of disagreement between the Democratic and Republican parties.

The US Senate passed a bill to raise the debt ceiling. (Source: Getty Images)

The debt ceiling bill will now go to President Joe Biden for his signature, with just days left until the June 5 deadline warned by the US Treasury Department for the parties to reach an agreement to raise the $31.4 trillion debt ceiling before the federal budget runs out.

This is a crucial next step towards passing a final bill, before a potential default could have devastating effects on the world's largest economy .

Speaking in the Senate, Senate Democratic Leader Chuck Schumer said: "America can breathe a sigh of relief because we are avoiding default."

The 99-page bill would cap spending for the next two years, suspend the debt ceiling until January 2025 and make policy changes, including new work requirements for older Americans receiving food aid and greenlighting the Appalachian natural gas pipeline.

Republicans argue that deep spending cuts are needed to rein in the rise of the national debt, which stands at $31.4 trillion, equivalent to the economy's annual output.

Most of the savings would come from limiting spending on domestic programs such as housing, education, scientific research and other forms of spending. Military spending would be allowed to increase over the next two years.

Previously, on May 31, the Republican-controlled House of Representatives voted to pass a bill to raise the public debt ceiling with a ratio of 314-117.

Source: https://baoquocte.vn/thuong-vien-gat-dau-nang-tran-no-cong-nuoc-my-tho-phao-nhe-nhom-229410.html