President Joe Biden is in the Oval Office at the White House to sign an executive order intended to reduce bureaucracy around government services for the public.
The United States will not default on its debt for the first time ever after President Joe Biden signed a debt ceiling increase into law.
The country was close to economic danger. The borrowing limit hike was signed by Biden a day after the Treasury Department estimated it would run out of money.
The legislation raising the debt ceiling was sent to Biden early Wednesday. The government is expected to be able to cover its obligations into the future.
Failure to increase the borrowing limit could lead to a recession and job losses in the country.
Some Democrats wanted to increase the debt ceiling or scrap it. Republicans will have the chance to use the limit as a political cudgel if they regain control of Congress next year, since they will have to raise the limit again in 2023.
Democrats raised the debt ceiling without Republican support. The GOP voted to allow Democrats to lift the borrowing limit with a simple majority vote in the Senate.
The debt ceiling is usually raised by both parties. Democrats have a responsibility to raise this time as they pursue a bill without GOP support, argued Republicans.
New government spending is not authorized by increasing the borrowing limit. If Democrats had not passed new legislation, Congress would have had to raise the ceiling.
You can subscribe to CNBC on the internet.
