Photo Credit: Unsplash
What’s U.S.' debt ceiling? Is the country going to default? Here's all you need to know.
The debt ceiling is the self-imposed limit on the amount of money the U.S. government can borrow to pay for services.
Photo Credit: Unsplash
The current debt ceiling stands at $31.4 trillion, while the debt stands at roughly $30.1 trillion.
Photo Credit: Unsplash
Apart from normal deficit, events like the 2001 and 2008 recessions, 2017 Trump tax cuts, and the pandemic have led to a significant increase in debt for the U.S.
Photo Credit: Unsplash
U.S. could default on its obligations early next month—possibly as early as June 1 if the debt limit is not raised, according to Treasury Secretary Janet Yellen.
Photo Credit: Unsplash
The U.S. has never defaulted on its debt obligations. Since 1960, Congress has increased the ceiling 78 times, most recently in 2021.
Photo Credit: Unsplash
The U.S. Congress would need to pass legislation to either raise the limit or do away with the ceiling.
Photo Credit: Unsplash