The Senate cleared a bill passed by the House of Representatives a day earlier to extend the country's borrowing authority till 2024, averting the next showdown until after the presidential election.

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The compromise package was negotiated between US President Joe Biden and House speaker Kevin McCarthy.

Senate majority leader Chuck Schumer said the bill's passage means “America can breathe a sigh of relief.”

Raising the nation’s debt limit, now $31.4 trillion, would ensure Treasury could borrow to pay already incurred US debts.

President Biden welcomed yesterday’s vote as a ‘big win’ for Americans.

"No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people," he tweeted.

“It protects the core pillars of my Investing in America agenda that is creating good jobs across the country, fueling a resurgence in manufacturing, rebuilding our infrastructure, and advancing clean energy,” an official statement by the US President on Senate passage of the bipartisan budget agreement said.

He would sign the bill ‘as soon as possible’ and address the nation today, Biden added.

Fibre2Fashion News Desk (DS)