The government has brushed up against its legal borrowing capacity of $38.381 trillion.
began Thursday with the Treasury Department implementing accounting measures as a stopgap, while friction between President Joe Biden and House Republicans raised concern about whether the U.S. can sidestep an economic crisis. said in a letter to congressional leaders it has started taking “extraordinary measures” as the government has run up against its legal borrowing capacity of $31.381 trillion.
But this particular moment seems more fraught than past brushes with the debt limit because of the broad differences between Biden and new House Speaker Kevin McCarthy, who presides over Those differences increase the risk that the government could default on its obligations for political reasons. That could rattle financial markets and plunge the world’s largest economy into a preventable recession. imposes measures to keep the government operating until at least June.
“Why create a crisis over this?” McCarthy said this week. “I mean, we’ve got a Republican House, a Democratic Senate. We’ve got the president there. I think it’s arrogance to say, ‘Oh, we’re not going to negotiate about pretty much anything’ and especially when it comes to funding.” But any deal would also need to pass the Democratic-run Senate. Many Democratic lawmakers are skeptical about the ability to work with Republicans aligned with the “Make America Great Again” movement started by Trump. The MAGA movement has claimed that the 2020 election lost by Trump was rigged, a falsehood that contributed to the Jan. 6, 2021, insurrection at the U.S. Capitol.
What happens if these measures are exhausted without a debt limit deal is unknown. A prolonged default could be devastating, with crashing markets and panic-driven layoffs if confidence evaporated in a cornerstone of the global economy, the U.S. Treasury note. Still, if past debt ceiling showdowns such as the one that occurred in 2011 are any guide, Washington may be in a nervous state of suspended animation with little progress until the “X-date,” the deadline when the Treasury’s “extraordinary measures” are depleted.
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US Treasury buys time for Biden and GOP on debt limit dealThe countdown toward a possible U.S. government default began Thursday with Treasury implementing accounting measures to buy time as frictions between President Joe Biden and House Republicans raise alarms about whether the United States can sidestep a potential economic crisis. The Treasury Department said in a letter to congressional leaders it has started taking “extraordinary measures” as the government has run up against its legal borrowing capacity of $31.381 trillion. An artificially imposed cap, the debt ceiling has been increased roughly 80 times since the 1960s.
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Treasury Department buys time for President Biden and GOP on debt limit dealThe 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.
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US Treasury buys time for Biden and GOP on debt limit dealThe Treasury Department says it has started taking “extraordinary measures” as the government has run up against its legal borrowing capacity of $31.381 trillion
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US Treasury buys time for Biden and GOP on debt limit dealThe Treasury Department says it has started taking “extraordinary measures” as the government has brushed up against its borrowing capacity of $31.381 trillion. Political frictions are raising alarms about avoiding a potential economic crisis.
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US Treasury buys time for Biden and GOP on debt limit dealThe Treasury Department said in a letter to congressional leaders it has started taking “extraordinary measures” as the government has brushed up against its legal borrowing capacity of $38.381 trillion
Leer más »
On debt limit, Biden-House GOP frictions are raising alarmsThe countdown toward a possible U.S. government default is in the offing
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