Biden Signs Fiscal Responsibility Act, Ending Debt-Limit Crisis
President Biden signed the Fiscal Responsibility Act of 2023 into law on Saturday, ending for now the threat of economic calamity from a default on the nation’s debt and putting limits on spending for two years.
The White House issued a statement saying that Mr. Biden had signed the legislation, days after it was passed by the House and the Senate following weeks of sometimes bitter negotiations with Republicans.
Mr. Biden’s signature came just two days before the so-called X-date, when Janet L. Yellen, the Treasury secretary, had said the government would run out of cash to pay its debts. Economists had predicted that if it did so, the resulting collapse in faith in America’s financial promises would cause economic instability around the world.
To avoid that, the legislation Mr. Biden signed suspends the nation’s debt ceiling, allowing the government to borrow what it needs to meet its obligations. In remarks to the nation on Friday evening, Mr. Biden said it had been crucial for Republicans and Democrats to find a way to reach an accommodation.
Source: The New York Times
