According to Bloomberg News, the senate democrats have raised the country’s debt ceiling by $2.5 trillion by introducing legislation. This figure is deemed adequate to extend the United States borrowing authority until the beginning of 2023.
The Senate Tuesday was expected to clear the legislation. According to Steny Hoyer, the House Majority Leader, he stated that he had plans to arrange for a voting schedule later on the same day in his chamber. Once passed by the House, it would send the message to the President, who would approve of it by signing the same.
Bloomberg News reports that Congress approved the legislation last week, thereby establishing a measure, a one-time procedure that would fast track the measure by offering a shield from the GOP filibuster in 50-50 Senate instead of the legislation passing in the Senate with a majority.
Janet Yellen, the Treasury Secretary, has sent a warning stating that it could be difficult for the government to meet the obligations post-December 15th as the government might hit the debt limit. However, outside analysts have said that the government might have some more time at its disposal.
As much as $480 billion was added by Congress to the US debt ceiling in October following weeks of partisan that led to unnerving of investors. However, this time around, Minority Leader Mitch McConnel and Schumer have agreed upon a procedure that permits the lifting up of the debt ceiling without the support of the Republicans.
According to Bloomberg News, the debt limit boost will help the Treasury recover the depleted stockpile of cash belonging to the Treasury and eliminate the risk of non-payment related to the government’s securities.
Due to political upheavals related to the issue, it was found that the traders had imposed discounts on those Treasuries that would mature in the second half of December. These discounts, however, were withdrawn after the decision of a debt-ceiling plan was revealed in the news.
