Home Economy Senate raises debt ceiling again to help U.S. economy escape another disaster

Senate raises debt ceiling again to help U.S. economy escape another disaster

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Photo (c) Douglas Rissing – Getty Images

The U.S. economy got another 11th-hour reprieve late Thursday. The U.S. Senate voted to raise the debt ceiling limit by $48 billion, avoiding the fate predicted by Treasury Secretary Janet Yellen that the U.S. would likely face a financial crisis if lawmakers did nothing. Yellen previously said not raising the debt ceiling could cause interest rates to rise quickly, leading to millions of lost jobs and a possible recession.

The Treasury Secretary wasn’t alone in her fears. The nation’s largest lender — JPMorgan Chase — had reportedly been working on plans for weeks that would have gone into effect if the U.S. economy fell into default mode. According to an exclusive report by Reuters, the bank was preparing to address everything possible — the repo and money markets, client contracts, its capital ratios, and how ratings agencies would react.

“This is like the third time we’ve had to do this, it is a…

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