October 1, 2021

Will Next Week Be The Moment Of Determining The Fate Of The U.S. Debt Limit?

 U.S. Senate Majority Leader Chuck Schumer appeared to provide enlightenment on the development of the national debt issue. A recent statement from him stated that he would work on the matter by asking the Senate to consider a bill raising the country’s debt limit ‘as early as next week’.

The Republican Senate this week has twice blocked the effort when the vote was made. On Monday, with 60 votes needed to approve the move, only 48 votes from senators agreed to go ahead and another 50 votes against.

This has caused investors to worry if the US fails to raise the debt limit on September 30, as it could lead to a ‘government shutdown’.

With federal government funding set to end on Thursday and borrower power running out around Oct. 18, the Democrats are doing their best to tackle the fiscal disaster of debt default and goverment shutdowns.

Unfortunately, the Republican Party has so far not shown significant support. The House of Representatives on Wednesday approved a move to raise the debt limit until the end of 2022. U.S. Senate Minority leaders. Mitch McConnell predicted on Thursday that the Senate will take steps to prevent a partial government shutdown. This could lead to an indication that there has been little support from the Republican Party.