The US President decided to raise the national debt.
The US President Donald trump and the leaders of both parties in Congress on Wednesday, 6 September, agreed to raise the debt ceiling until 15 December, to adopt the bill on the Federal budget for the same period and to allocate funds for assistance to victims of the hurricane “Harvey”.
So, trump had a meeting with representatives of Congress to discuss the issue of public debt and assistance to victims. Following the meeting, the leaders of the Democrats in the Senate and House of representatives Chuck Schumer and Nancy Pelosi have issued a statement in which he announced the agreement.
“Both sides are determined to avoid default in December and aims to work together to address the many problems facing us,” – said in a statement, Schumer and Pelosi.
“Nation can breathe a sigh of relief. We avoided default. We’ve avoided closing the government,” added Schumer in comments to reporters.
According to the Agency, the agreement was a rare example of bipartisan compromise since, as trump took office. If it is supported by the Congress, led by Republicans, this will help to prevent an unprecedented default on U.S. government debt, to ensure financing of the government during the first three months of the fiscal year beginning on October 1, and to provide assistance to the victims of the hurricane “Harvey”.
Republican party representatives at the meeting insisted on increasing the debt limit for a longer period. But by the end of the meeting, trump joined the Democrats, who advocated a three-month increase in the debt ceiling.
If lawmakers will not be able to time until October 1 to make a decision about raising the debt ceiling, the government will be forced to stop its work until the approval of the bill.
Earlier, the Ministry of the Treasury declared that the debt ceiling should be raised in the next few weeks: otherwise, the government will not be able to pay bills, including payments on debts. It can hurt the credit ratings of US, cause financial turmoil, damage the economy and possibly provoke a recession.
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