Congress finally raises debt-limit by $2.5tn after months of delays

The Senate narrowly (50-49) managed to raise the debt-limit just days before a much-feared default.

President Biden will now sign the debt-limit into law and it will raise the US debt by $2.5tn. Several economists and Treasury officials had warned that the economy could fall into recession if the limit wasn’t increased by the middle of December.

Congress had temporarily increased the limit twice because of Democratic infighting and Republican opposition over a new permanent increase.

The vote comes after last week’s Bipartisan deal struck between Senate Majority and Minority leaders to increase the limit through a one-time-only rule change.

14 Republicans had crossed the aisle to vote for the rule change that would allow the Dems to increase the debt-limit through a simple majority and not the 60 votes.

The increase in the debt-limit became a hot subject at the Capitol because of President Biden’s “Build Back Better Act” which would divert mass spending to social and climate sectors with little to no return to pay back the accumulated debt.

Any future increases in the debt-limit will now be suspended till after the 2022 mid-terms.

Democrats have welcomed the move and are happy to have got what they wanted before Christmas. The Republicans however, have warned that they won’t take any blame for any damages dealt to the economy by President Biden’s reckless far-left spending packages.