The Senate has passed a bill that suspends the debt ceiling of the United States and imposes spending restrictions until the 2024 elections. This decision has put an end to a situation that could have led to a serious financial crisis.
Analysts note that the two-year spending restrictions outlined in the agreement will have an additional short-term impact on an already vulnerable economy on the brink of a recession. However, they believe that these limitations will have little effect on the unstable medium-term trajectory of the US federal debt. According to their assessments, the US debt will continue to grow from its current level of 97% of GDP in 2022 to over 130% of GDP by 2033.
