Tuesday, October 19

Agreement in the Capitol to avoid the closure of the Government due to lack of financing


New York

Updated:

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In addition to the squabbles between moderates and leftists over the debt ceiling, the US Congress was playing a very important issue today: avoiding the government shutdown due to lack of funding. At midnight today the deadline to approve it was over; otherwise, many government services would be forced into a temporary shutdown. The The Senate agreed with the support of both parties (65 in favor, 35 against) to approve an extension of government funding until next December 3, with the inclusion of items to compensate for natural disasters that have occurred in the country in recent months (28.6 billion dollars) and for the accommodation of evacuees from Afghanistan (6.3 billion).

The agreement, achieved after some concessions from the Democratic leaders to the Republican caucus, was later endorsed in the House of Representatives and only awaited the signing of Joe Biden.

Democrats wanted the agreement to include a suspension of the current spending ceiling, which Republicans opposed. That matter should be resolved in the coming weeks, since, according to the Treasury, The US Government only has liquidity left to pay its debt until October 18 and it will need to expand it, as has happened on many occasions in recent years.. If things do not change, the US will be doomed to ‘default’, which could have serious implications for the US economy and financial markets.

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