US President Joe Biden, on Saturday, signed the legislation into law that lifts the country's $31.4-trillion debt ceiling, averting a catastrophic, self-induced default in the world's biggest economy. The comes when the country had just days to spare, the Treasury had warned that if the debt ceiling was blocked beyond Monday, the country would default on its debt. Biden addressed the nation from the Oval Office and said that the bill save the country from economic collapse. The Fiscal Responsibility Act of 2023 authorises the government to extend the so-called debt ceiling to renew borrowing, keeping the bills paid.
He thanked the Republican and Democratic leaders in Congress "for their partnership", as reported by news agency AFP. Seated at the Resolute desk, Biden said that the debt ceiling bill saved the country from "economic collapse." He said that the deal helped resolve the standoff between Democrats and Republicans which was a compromise where "no one got everything they wanted."
However, "We averted an economic crisis," he added.
The Oval Office addresses by Presidents are saved for moments of unique national danger or importance. According to AFP, during the address, in a calm tone whiled sprinkling chuckles and smiles in his speech, Biden praised his opponents for negotiating in good faith and promised Americans that he had never felt more optimistic. Biden said that Congress has now preserved "the full faith and credit of the United States."
Despite the rush to pass the new legislation, the US economy did take a hit. As per AFP, the ratings agency Fitch said Friday that it is keeping the United States' "AAA" credit rating on negative watch, despite the deal.
After the Senate passed the bill, Biden praised Congress' timely action on Thursday. "This bipartisan agreement is a big win for our economy and the American people," the US President said in a statement, adding that he will sign it into law as soon as possible. He was directly involved in negotiations on the bill with House Speaker Kevin McCarthy.
Kevin McCarthy, the speaker of the Republican-led House, had touted the compromise bill as a big victory for conservatives, although he faced a backlash from hardliners on the right who said he made too many concessions.
Biden especially thanked McCarthy, a politician long loyal to former president Donald Trump — the man Biden defeated in 2020 and who is seeking his own return in 2024.
"I want to commend Speaker McCarthy. You know, he and I, we and our teams, were able to get along, get things done," Biden said.