Joe Biden Signs Debt Ceiling Bill Into Law, Averting Default

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.

US President Joe Biden on Saturday signed into law a debt ceiling bill passed by Congress after weeks of wrangling, moving to avert a catastrophic, self-induced default in the world's biggest economy.

The Fiscal Responsibility Act of 2023 authorizes the government to extend the so-called debt ceiling to renew borrowing, keeping the bills paid. The Treasury had warned that if the debt ceiling was blocked beyond Monday, the country would default on its $31 trillion debt.

A default would have likely triggered market panic, huge job losses and a recession, with global implications.

In a statement Saturday, the White House thanked the Republican and Democratic leaders in Congress "for their partnership."