President Biden and Congress Avert Unprecedented Default on Federal Debt with Agreement Suspending Debt Ceiling Until 2025.

The United States has avoided an unprecedented default on its federal debt, with President Joe Biden signing legislation on Saturday that lifts the nation’s debt ceiling. The Treasury Department had warned that the country would start running short of cash to pay all of its bills on Monday, which would have sent shockwaves through the U.S. and global economies.

The final agreement, passed by the House on Wednesday and the Senate on Thursday, suspends the debt limit until 2025 — after the next presidential election — and restricts government spending. The White House announced the signing, done in private at the White House, in an emailed statement in which Biden thanked congressional leaders for their partnership.

The agreement is seen as a major victory for President Biden, who had urged Congress to raise the debt ceiling in order to avoid defaulting on the nation’s debt. The debt ceiling had been set at $20.5 trillion, and the Treasury Department had warned that the country would run out of cash to pay its bills by Monday.

The agreement will allow the government to borrow more money to pay its bills and avoid defaulting on its debt. It also provides a measure of fiscal stability for the next four years, as the debt ceiling will not need to be raised again until 2025.

The agreement is seen as a major victory for President Biden and Congress, who were able to come together to avert an unprecedented default on the federal government’s debt. The agreement will provide fiscal stability for the next four years and will allow the government to borrow more money to pay its bills.