House approve short term suspension of debt ceiling

The House of Representatives voted today to suspend the debt ceiling until May 18. The path has now been cleared for a resumption in debt issuance at least up until that date, giving the Treasury the ability to start making normal payments, thereby removing any prospect of default. The debt ceiling had been hanging over the markets and the economy, so for now, this will no longer be a worry. On the other hand, the economy will still have to contend with higher payroll taxes and that will mean a bigger bite out of worker paychecks.