Hitting the national debt ceiling is a major worry for Washington right now.
On Friday, Treasury Secretary Janet Yellen warned that the U.S. is on track to reach the debt limit, or the cap on how much money the federal government can borrow, by Thursday. The ceiling was last raised by $2.5 trillion in December 2021 to a total of $31.4 trillion.
In the past, Congress has avoided breaching the limit by simply raising it. But House Republicans said they will not support increasing the debt ceiling this time around — not unless they get spending cuts or other concessions.
In a letter to congressional leaders, Yellen said deadlock around the debt ceiling can cause “irreparable harm” to the economy and even global financial stability. She harkened back to 2011, when the U.S. reached its debt limit, wreaking havoc on the stock market.
Read more at NPR.org
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