DNY59
The US House of Representatives voted Wednesday night to easily pass a debt ceiling relief deal — an exciting move to keep the limit increase on track as the Treasury Department heads toward a Tuesday deadline, after which the government won’t have funding ready to pay its bills.
The total number of votes was 314 in favor and 117 against. Republicans voted in favor of the bill by a margin of 149-71, while Democrats approved it by a vote of 165-46.
After exiting committee on Tuesday and a procedural vote earlier Wednesday, the debt ceiling bill was the subject of closely watched comments from representatives on both sides of the aisle — and found many disliked with the compromise, which was to increase the debt ceiling to give space. To breathe until January 2025, until after the next presidential election.
Now the measure is set to go to the Senate which is also working on a tight schedule and preparing for a vote this weekend. A number of senators have expressed a desire to amend the bill, but any successful amendments mean it will return to the House for further approval, and the deadline also threatens.
Earlier Wednesday, the bill came close to a procedural setback after some Republican defections, but late in the vote, Democrats helped House Speaker Kevin McCarthy secure the rules for debate so the bill could move to an overnight vote.
Futures changed little after the successful vote. As of 9:27 pm, Dow futures were down -0.15%, S&P futures were down -0.01% and Nasdaq futures were down -0.13%. Meanwhile, the two-year Treasury futures contract fell -0.01%; 10-year futures -0.04% and 30-year +0.05%.
The margin of victory was greeted by Republican Speaker of the House Kevin McCarthy as positive news, as the deal came to be seen as a referendum on his (narrow) support for the leadership.
After the vote, McCarthy said, “Tonight we all made history, because this is the largest reduction and savings Congress has ever voted for.”
Dear readers: We realize that politics often intersect with the financial news of the day, so we invite you to click here to join our separate political discussion.