US averts first-ever default with 11th-hour debt deal

US senators voted to suspend the federal debt limit yesterday, capping weeks of fraught negotiations to eliminate the threat of a disastrous credit default just four days ahead of the deadline set by the Treasury.

Economists had warned the country could run out of money to pay its bills by Monday – leaving almost no room for delays in enacting the Fiscal Responsibility Act, which extends the government’s borrowing authority through next year while trimming federal spending.