US Congress raises debt ceiling to 2015 without political drama
THE US economy has been spared another crisis over public debt levels after Congress last night approved a deal to extend the federal government’s capacity to borrow money.
The Senate backed a bill already passed by the House of Representatives to hike the debt ceiling, preventing the government shutdown the country suffered last Autumn. The deal gives the government borrowing power until March 2015. “We can put off discussing this silly issue for at least another year,” said John Hardy of Saxo Bank.
“The willingness to compromise amongst some Republicans, which facilitated the agreement in the House of Representatives, is likely to weaken their position in the grand old party,” added Ulrich Leuchtmann of Commerzbank.
“Political risks could continue to put pressure on the dollar.”