The US debt default crisis eased? The two parties in the Senate reached an agreement to vote soon

　　Chinanews, October 8th, a comprehensive report, on the 7th, the US Senate Majority Leader Schumer announced that he has reached an agreement with Republicans to temporarily raise the debt ceiling until December.

This will give the two parties more time to discuss longer-term plans and temporarily avoid the crisis of debt default.

　　According to the latest news from Reuters, the Senate has begun a procedural vote to remove obstacles to passing the debt ceiling.

If this vote is passed as expected, the Senate will soon conduct a second vote to vote on the bill to temporarily raise the debt ceiling.

　　If the bill is finally passed, it will be passed to the House of Representatives for a vote and sent to President Biden for signature.

　　But if the Senate fails to agree on the steps to speed up the adoption, the debate may extend to the 8th or later.

　　After Schumer made the above statement, Senate Minority Leader McConnell confirmed in a speech that they had reached an agreement.

He said: "The Senate is advancing the plan I put forward last night to save the American people from an unprecedented crisis."

　　Reuters quoted sources as saying that the new agreement calls for an increase of the current debt ceiling of 28.4 trillion US dollars by US$480 billion.

If approved by the Senate and House of Representatives, the US debt ceiling will be set at 28.9 trillion US dollars, enough for the federal government to continue issuing debt until early December.

　　However, the agreement has been strongly opposed by former President Trump ally and Republican Senator Graham, who is the Republican leader of the Senate Budget Committee.

Graham said: "I do not support the Democratic Party’s budget coordination (bundle) bill, nor do I support raising the debt ceiling to achieve this level of expenditure. If Democrats want to increase the debt ceiling, they can use the budget coordination process."

　　According to McConnell’s previous plan, Republicans will “assistance in speeding up” the budget coordination process, which will allow Democrats to raise the debt ceiling on their own without Republican support.

Republicans "will also allow Democrats to use normal procedures to urgently extend the debt ceiling to December with a fixed amount and current spending levels to protect the American public from the recent crisis created by the Democrats."

　　The debt ceiling stalemate began a few weeks ago as a routine political conflict, and now Congress is facing urgent pressure to act before the October 18 deadline.

Because if an agreement cannot be reached, the United States will face a rare risk of defaulting on federal debt.

This may trigger a series of fiscal crises, which will not only affect the government and financial markets, but also the ordinary economy and the lives of Americans.