House Approves Debt Limit Expansion That Will Last Through Early December

Source: The Wall Street Journal

The House on Tuesday voted on partisan lines to increase the U.S. borrowing limit into December as Democratic lawmakers struggled with legislation to set a new ceiling for U.S. debt later this year. DXY down -0.22%, EUR USD up +0.46%

• House Speaker Nancy Pelosi recalled the House after a week away to pass the debt-ceiling rise that cleared the U.S. Senate last week.
• The call followed a caution from Treasury Secretary Janet Yellen to House Democratic leaders when the chamber failed to take action this week that the U.S. would not be able to cover its bills.
• The passed bill would expand the debt ceiling by $480 billion, an amount that would allow the U.S. to pay its accrued bills through December 3, projecting it had exhausted all of its cash-conservation strategies.
• Goldman Sachs expects that the money would last longer, but not to the end of the year, implying the U.S. has nearly two months before congress must handle the debt ceiling issue again.