U.S. Default Averted Following Congress Approval to Suspend Debt Ceiling

In the eleventh hour, the Senate passed a wide-ranging legislation, the Fiscal Responsibility Act, on Thursday evening, June 1st that will enable the U.S. to avert what could have been a catastrophic default. News of the deal passing comes just a few days prior to the Monday, June 5th deadline when the Treasury Department said the government will have insufficient money to pay all of its bills. As part of the deal, the $31.4 trillion debt ceiling will be suspended through January 1, 2025, while cutting federal spending. According to the Congressional Budget office, the “legislation would reduce government deficits by about $1.5 trillion over a decade compared with the baseline forecast.”

Source:    https://www.wsj.com/articles/senators-seek-to-fast-track-debt-ceiling-vote-62dfeac4