"On Saturday, June 3, 2023, the President signed into law ... H.R. 3746, the ``Fiscal Responsibility Act of 2023,'' which suspends the public debt ceiling until January 1, 2025, and extends the ceiling on January 2, 2025. Increases. Adjust the obligations issued during the suspension period,” it said.
The bill also cancels certain unobligated balances, increases work requirements for several federal programs, modifies the environmental review process, and ends the suspension of federal student loan payments.
Earlier, Biden said in a statement that the passage of legislation in Congress earlier this week to raise the United States debt ceiling was "crucial" and averted an economic crisis and disaster.
"Passing this budget deal was critical. The stakes couldn't be higher," Biden said Friday. "We avoided economic crisis and economic collapse."
Earlier this week, US lawmakers passed the Fiscal Responsibility Act, a deal between Biden and House Speaker Kevin McCarthy to raise the debt ceiling in exchange for limited fiscal reform.
According to the Treasury Department, the US could default on its financial obligations next week if no deal is finalized by then.
However, on Friday, Fitch Ratings said in a statement that it would maintain a negative outlook on the United States' AAA sovereign rating through the third quarter of this year, as it approaches the highest debt ceiling agreed by President Biden. It studies the consequences of events. And his Republican rivals.
Fitch acknowledged that a deal to suspend the previous $31.4 trillion debt ceiling had passed the U.S. Senate and needed only President Joe Biden's signature to become law, but said it was the U.S.'s status quo. Will keep a negative eye on the ban.
Fitch cited a legacy of troubled governance over the past decade and a half as one reason for its decision, the statement said.
Fitch blamed his weak confidence in the governing process on contentious negotiations between Democrats and Republicans aligned with House Speaker Kevin McCarthy before the debt deal.
Fitch said it believes the U.S. rating is supported by exceptional strengths, including the size of the economy, high GDP per capita and a vibrant business environment. He added that the U.S. dollar being the world's leading reserve currency gave the government unprecedented flexibility in financing, although some of that power could be eroded over time by governance lapses.
