Biden signs debt ceiling bill after months-long standoff, avoiding default

Kevin McCarthy, the House speaker, secured a number of cuts on federal spending, with the borrowing limit suspended until 2025

Joe Biden signed a bill on Saturday to suspend America’s debt ceiling, ending a months-long standoff with the Republican House speaker, Kevin McCarthy, and averting a federal default that could have upended the US economy.

Economists had warned that a federal default, which has never occurred in US history, could have caused the unemployment rate to double while significantly damaging America’s gross domestic product (GDP).