US Senate reaches an agreement to avoid defaulting on the national debt

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Washington, Oct 7 (EFE) .- Democrats and Republicans of the US Senate have reached an agreement to suspend the debt ceiling and prevent the country from incurring a suspension of payments of the national debt on October 18, announced Thursday the leader of the Democrats in that chamber, Chuck Schumer.

The agreement will allow the suspension of the debt ceiling until December 3 and avoid the dreaded suspension of payments, which could have unleashed chaos in the financial markets and lowered the solvency score of the United States.

“We have reached an agreement to extend the debt ceiling until early December,” Schumer announced from the floor.

The Democrat pointed out that the Senate could vote this Thursday on a bill to resolve that issue, although a time has not yet been set for that vote.

To become law, the bill would still need to be cleared by the Democratic-majority House of Representatives.

Just after Schumer announced the deal, the Dow Jones Industrials, Wall Street’s leading gauge, rose 540 points or 1.56%; while the composite index of the Nasdaq market, in which the most important technology companies are listed, rose a notable 1.43%.

The rapprochement between the two parties comes after this Wednesday the leader of the Senate Republicans, Mitch McConnell, offered a deal to the Democrats to find a temporary solution.

Specifically, McConnell said he was willing to suspend the debt ceiling until December of this year, instead of until December of next year as the Democrats wanted, who do not want to talk about that issue during the campaign for the November legislative elections. 2022.

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McConnell explained this Thursday from the hemicycle that the advisers of the Democrats and Republicans had “negotiated throughout the night in good faith” and filed the details of the pact.

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