Debt ceiling news – live: Biden signs debt limit bill after hailing deal in Oval Office address

The House of Representatives has voted to raise the debt limit, thereby ensuring the United States will avoid defaulting on its debt, despite vocal opposition from many Republicans in the House majority.

Eric Garcia explains who is unhappy.

The Senate will be in a race against the clock to pass the bipartisan debt limit legislation that the House of Representatives passed on Wednesday evening before the United States hits the date when it will default on its debt.

Eric Garcia explains what has to be done.

CNN’s Manu Raju reports:

Leaving lunch, Sens. Rick Scott and Mitt Romney told me that senators are looking to finish up the debt limit vote tonight. Meaning amendment votes (which will fail) and final passage. They still need an agreement of all 100 senators, but the goal is to get a final vote tonight.

Here’s what Newsmax host Eric Bolling had to say about the debt deal, via Mediaite:

Speaking before the final vote on The Balance, Bolling shredded the particulars and particularly shredded McCarthy for giving the win to the Democrats.

“Joe Biden must be so happy right now,” Bolling said. “He doesn’t have to deal with his massive deficit issues until after the 2024 election. How convenient. And for that, you can thank none other than House Speaker Kevin McCarthy.”

Bolling said that it could have been a big issue for Republicans to revisit in the campaign, but “Sleepy Joe didn’t want that, and Kevin McCarthy may have handed Joe Biden a second term in this deal.”

MAGA firebrand Lauren Boebert emerged as one of the fiercest critics to the debt ceiling deal brokered by House leader Kevin McCarthy and President Joe Biden to avoid a catastrophic default.

But when it was time for the House of Representatives to cast their votes on Wednesday night, she failed to show up.

Ms Boebert was mocked on social media after she reportedly “narrowly missed the vote, running up the steps right as they gaveled”, according to Axios Capitol Hill reporter Juliegrace Brufke.

Bevan Hurley reports.

Global shares clawed back gains on Thursday after the long-awaited US debt ceiling saga neared a conclusion.

Members of the House of Representatives, which is Republican controlled, passed a new bill which suspends the ceiling, and it is now heading to the Senate for final approval.

Global sentiment had been rocked over fears the nation would default on its own debt and not be able to pay any bills, with an economic impact that would be felt globally.

European markets edged higher and US investors were feeling more positive after sustaining significant losses earlier in the week, but it was a somewhat muted reaction to the debt ceiling breakthrough.

Mining stocks helped lift the FTSE 100 higher after a jump in oil and copper prices, but it still lagged below the 7,500 mark.

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Shares inched higher in London on Thursday, and the pound made gains against the dollar, after US lawmakers in the House of representatives passed a new bill on the country’s debt ceiling.

The bill, which suspends the ceiling, passed with both Democrats and Republicans supporting it, and will head to the US Senate for the final approval.

The House – which is Republican controlled – had widely been seen as the bigger hurdle out of the two bodies of Congress.

By around 2pm, ahead of US markets opening, London’s FTSE 100 was trading up 0.2% at 7,462 points.

One pound could buy around 1.25 dollars, up one third of a per cent from the day before.

But what is the debt ceiling, and what might have happened if the US had hit it?

White House staffers attempted to soft-pedal their agreement with House Speaker Kevin McCarthy, despite considering a major win, according to Politico.

Officials were concerned that any boasting about the agreement without prompt a Republican backlash and make it harder to pass.

Other than ensuring its passage, the Biden team also wanted to appear as the “adults in the room” in a highly partisan environment and use the negotiations as an outline for the 2024 reelection campaign.

The US introduced the debt limit in 1917 at what today looks like a tiny 11.5 billion dollars.

At the time, they set it up to make the process of borrowing money easier – until then Congress had to pass new legislation to approve all borrowing.

By instead putting a limit on borrowing, it allowed the executive branch of the Government more flexibility in what and when it borrowed, so long as it did not borrow more than the ceiling.