As often, everything was unlocked at the last second. Joe Biden announced on Friday that he would sign legislation on Saturday to avert what would have been a “catastrophic” default.
“Nothing would have been more irresponsible, nothing would have been more catastrophic” than a bankruptcy of the first world power, said the American president, addressing the nation from the most solemn of settings, the Oval Office.
No crisis during the 2024 presidential election
After months of a game of lying poker, Joe Biden and Republican House Speaker Kevin McCarthy struck a centrist compromise that was widely supported in Congress, allowing the debt ceiling to be suspended until January 1, 2025 in return for a slight lower expenses.
This means that the United States will be able to continue to borrow and avoid a default, and that the crisis will not return to the front of the stage before the presidential election of 2024.