The US congress have approved the nation’s debit bill, with just hours before the October 17 deadline, where the US Treasury will exhaust its borrowing limit.
After nearly three weeks of a partial government shutdown due to the spending and Obamacare issues, the US congress have finally ended the shutdown on Wednesday after member of Congress a bill to raise the debt bill of $16.7 trillion and open funding for the US government until early 2014, reopening the government, federal agencies and bringing federal employees back to work.
In the Senate, the bill was opposed by 18 votes, while 81 legislators voted for the bill. In the House of Representatives, the deal was passed by 285-144. Both sides of the Congress supported the legislation and left the healthcare reform, also known as Obamacare intact.
President Barack Obama signed the legislation into law early on Thursday morning.
The proposal was a result of several days of discussions between a group of Senate officials with Minority Leader Mitch McConnell (R-Ky) and Majority Leader Harry Reid (D-Nev).
The proposal is raising the treasury’s borrowing limit until February 7 and the funds for the US government until January 15. The proposal also introduces tougher income verification for funding under the healthcare reform, also known as Obamacare.
The US lawmakers faced major pressure to end the government shutdown which was threatening to the economy recovery and the possibility of causing a global economic meltdown.
On Tuesday, Fitch joined the International Monetary Fund (IMF) and World Bank and warned the Congress could cause both a domestic recession and global economic disaster.
The US Treasury has $30 billion in cash reserves, without any borrowing authority, according to the Fitch Ratings agency.
“The US risks being forced to incur widespread delays of payments to suppliers and employees, as well as social security payments to citizens – all of which would damage the perception of US sovereign creditworthiness and the economy,” Fitch stated on Tuesday.
Visit www.hymarkets.com and find out more about our product offering and how you can start trading with only $50.
The post US Congress Ends Government Shutdown & Approves Debt Deal appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog