Americas

Senate's top Republican offers extension on US debt ceiling into December

WASHINGTON (REUTERS) – Top US Senate Republican Mitch McConnell on Wednesday (Oct 6) said his party would support an extension of the federal debt ceiling into December, a move that would head off a historic default with a heavy economic toll.

That could provide an off-ramp to a months-long standoff between President Joe Biden’s Democrats and McConnell’s Republicans, who were expected to block on Wednesday a third attempt by Senate Democrats to raise the US$28.4 trillion (S$38 trillion) debt ceiling.

“To protect the American people from a near-term Democrat-created crisis, we will also allow Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December,” McConnell said in a statement on Wednesday.

The Wednesday afternoon procedural vote is intended to allow the Senate to begin debating a Bill that would suspend the debt limit until December 2022, after elections that will determine control of Congress for the next two years.

That passed the Democratic-controlled House of Representatives last week but Republicans have stalled it in the Senate with the filibuster.

Without a quick resolution, some government services might be suspended, such as delivering Social Security benefit cheques.

More on this topic

Join ST’s Telegram channel here and get the latest breaking news delivered to you.

Source: Read Full Article