US House hikes debt ceiling, averts default

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Democrat-controlled House of Representatives Tuesday voted to temporarily increase debt limit amid looming default.
Democrats in the US House of Representatives have approved a $480bn increase in the United States government's borrowing limit, forestalling until December a reckoning with Republicans on the nation's spending and debt.

Democrats, who narrowly control the House, maintained party discipline to pass the hard-fought hike in debt limit increase in a vote Tuesday evening, temporarily raising the government's borrowing limit to $28.9 trillion.

US Treasury Secretary Janet Yellen had warned the US would run out of cash to pay its debts beginning as soon as October 18, while economists and business leaders said a US default would have devastating consequences for the global economy.

Earlier House Majority Leader Steny Hoyer announced the Tuesday vote saying, "It is egregious that our nation has been put in this spot, but we must take immediate action to address the debt limit and ensure the full faith and credit of the United States remains intact."

The bill was passed in the Senate last week after Republicans agreed to assist Democrats in overcoming procedural hurdles. President Joe Biden is expected to sign it into law quickly.

The short-term extension will give the US Treasury room to issue debt to fund government…
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