The 50/50 split in the Senate is evident.
50 Democrats in favor… 48 Republicans against
Temporary increase until December…
Democracy “must look for a long-term solution”
Senate Majority Leader Mitch McConnell (center) walks after a Republican luncheon held at the Capitol in Washington, DC, on the 7th. Washington = EPA
The U.S. federal government sighed over fears of default (default). The Senate narrowly passed a bill that would temporarily increase the federal debt limit, amid heightened risk of default this month over debt ceiling issues. A vote in the House of Representatives remains, but it is certain that the ruling party, the Democratic Party, is the majority in the House.
On the 7th (local time), the U.S. Senate voted 50 to 48 in favor of a bill that would temporarily increase the federal debt limit by $480 billion (about 571 trillion won) until December 3. In the 50-50 Senate, all 50 Democrats voted in favor of the increase, while Republicans voted 48 in favor and 2 abstentions. There is a difference from the 11 Republican lawmakers who voted in favor of the filibuster (opposition to legal proceedings) end ballot held before the final vote.
The U.S. turned away from default when the Democratic Party accepted the short-term moratorium offered by the Republican Party. Senate Minority Leader Chuck Schumer said before the vote, “We have reached an agreement with Republicans to put the debt ceiling on hold until December” and “we want to do it today.” Republican Senate Majority Leader Mitch McConnell accepted the compromise proposed the day before. McConnell said on the 6th that he would allow the Democrats to use the usual process to urgently extend the debt limit by a fixed amount, suggesting a way to suspend the application of the debt limit in the short term.
Treasury Secretary Janet Yellen has stated that the first default in US history is inevitable if the problem is not resolved by the debt ceiling grace period (18th), and the financial market is also in a state of uneasiness. President Joe Biden held a meeting with leaders in the financial and economic circles such as Bank of America, Citigroup, JP Morgan, and the National Real Estate Association at the White House on the same day, and debated the passage of the debt limit bill. The White House Economic Advisory Committee also issued a report, warning that “if the default is realized, financial markets around the world will be in shock and stock markets will plummet.”
Although it has succeeded in raising the debt ceiling, the road ahead for the US federal government seems to be difficult. Although the imminent default crisis has been overcome, this is only a temporary measure. The grace period is only two months, so in December, we face the same problem again. “The Republicans played a dangerous partisan game,” Schumer said. I’m glad their ‘brinkmanship tactic’ doesn’t work,” he said. “The Senate will again be under pressure to finance the government and raise its debt ceiling in December,” the Associated Press said.
Jinwook Kim reporter kimjinuk@hankookilbo.com
Washington = Jeong-won Jeong correspondent ornot@hankookilbo.com
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