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Tag: debt ceiling

The U.S. has hit the debt limit. Now what?
Business

The U.S. has hit the debt limit. Now what?

A political battle is brewing on Capitol Hill with potentially dire economic consequences looming after the U.S. hit the debt limit on Thursday. Lawmakers must reach an agreement to either raise or suspend the debt limit to avoid a credit default, which would mean the government couldn't pay its bills and would default on its debt obligations for the first time ever.Raising the debt limit would increase the amount the U.S. can borrow to meet its spending obligations. Suspending the debt limit means Congress freezes it until a specific date and then, as the Committee for a Responsible Federal Budget puts it, "sets an automatic catch-up," so that when that date arrives, the debt ceiling is raised to meet the current level of spending. For instance, the Bipartisan Budget Act of 201...
McCarthy says he looks forward to meeting with Biden, as debt ceiling debate continues
Politics

McCarthy says he looks forward to meeting with Biden, as debt ceiling debate continues

Biden, McCarthy to have debt limit meeting Biden to meet with House Speaker Kevin McCarthy to discuss debt ceiling standoff 04:38 House Speaker Kevin McCarthy tweeted Friday that he has an accepted an invitation from President Biden to meet and discuss, among other things, a solution to addressing the debt ceiling. The White House has previously said there would be no negotiations with Republicans on the debt ceiling, that there m...
Debt ceiling: 3 ways your finances could be affected
Politics

Debt ceiling: 3 ways your finances could be affected

The so-called debt ceiling — the amount the U.S. government can borrow to honor its spending obligations — may seem like an abstract political issue for congressional leaders to deal with, but millions of Americans could suffer very real-world financial hits if the conflict drags on.On Thursday, the federal government reached the debt limit of $31.4 trillion, prompting U.S. Treasury Secretary Janet Yellen to invoke "extraordinary measures" that will allow the country to avoid an unprecedented default for at least the next few months. Because U.S. debt is considered the bedrock of the global financial system — in part due to its stability — a default could undermine economies across the world. At home, many Americans would likely see a decline in their wealth as the stock market ...
U.S. debt ceiling: As limit nears, political frictions raise concerns – National
Global News

U.S. debt ceiling: As limit nears, political frictions raise concerns – National

The countdown toward a possible U.S. government default is in the offing – with frictions between President Joe Biden and House Republicans raising alarms about whether the U.S. can sidestep a potential economic crisis. The Treasury Department projects that the federal government will on Thursday reach its legal borrowing capacity of $38.381 trillion, an artificially imposed cap that lawmakers have increased roughly 80 times since the 1960s. Markets so far remain calm, as the government can temporarily rely on accounting tweaks to stay open, meaning that any threats to the economy are several months away. Even many worried analysts assume there will be a deal.But this particular moment seems more fraught than past brushes with the debt limit because of the broad differences betwee...