US Politics

Congress races to pass Joe Biden’s debt deal but economic risk remains

Economists have warned that the deal risks an additional short-term blow to an economy already vulnerable to a recession

Joe Biden met with House Speaker Kevin McCarthy in the Oval Office last week to discuss raising the debt limit in an effort to avoid a default by the federal government. Picture: Getty Images

The debt-limit deal struck by President Joe Biden and Speaker Kevin McCarthy is heading toward a vote today in the House of Representatives after clearing a crucial procedural hurdle with just days remaining to avoid a US default.

Legislation to suspend the US borrowing ceiling for a period and cap federal spending was advanced by the House Rules committee Tuesday night on a 7-6 margin, sending it to a vote on final passage by the ...