WASHINGTON – Congress has approved and President Barack Obama has signed legislation to avert a U.S. government default on its debts.
The bill also ends a 16-day partial government shutdown, meaning furloughed federal employees are headed back to work, and they’ll be paid for the time they were gone.
The legislation that ends the partial government shutdown and increases the debt limit is only a temporary fix. It funds the government only through Jan. 15 and allows normal borrowing through Feb. 7, or a little longer.
IMF managing director Christine Lagarde says it’s “essential to reduce uncertainty” by “raising the debt limit in a more durable manner.”