Category: National Debt (US)

Despite Debt Limit Deal, 14th Amendment Questions Linger

President Biden has been considering ways to challenge the constitutionality of the debt limit to defuse the risk of default.
Why the Debt Limit Spending Cuts Likely Won’t Shake the Economy

With low unemployment and above-trend inflation, the economy is well positioned to absorb the modest budget cuts that President Biden and Republicans negotiated.
Yellen’s Debt Limit Warnings Went Unheeded, Leaving Her to Face Fallout

The Treasury secretary, who considered ways to contain the fallout of a default when she was a Fed official in 2011, had urged Democrats to raise the limit while they still had control of Congress.
Time Is Running Out for Congress to Raise the Debt Ceiling

With a June 5 deadline looming, there is much to be done to prevent the default that leaders of both parties said would never happen.
Yellen Expects U.S. to Run Out of Cash by June 5 as Debt Talks Continue

The latest estimate is a slight extension from the previous June 1 deadline and comes as Republicans and the White House are trying to reach an agreement to raise the debt ceiling and avoid a crippling default.
How a Default Could Unfold

Here’s a look at what markets are expecting and planning for, and how a default might happen.
Military Spending Emerges as Big Dispute in Debt-Limit Talks

President Biden has offered to freeze discretionary spending, including for defense. Republicans want to spend more for the military, and cut more elsewhere.
Republicans Report Progress in Debt Limit Talks as Negotiations Continue

Negotiators reconvened on Thursday after working through the night to strike a deal, as hard-right Republicans and some Democrats expressed concerns about the shape of an emerging compromise.
Fed Officials Were Split Over June Rate Pause, Minutes Show

In the Federal Reserve’s last meeting, “several” participants thought rates may have moved high enough to get inflation under control.
McCarthy Renews Call for Spending Cuts as Debt Talks Resume at White House

With a potential default just over a week away, the House speaker is maintaining pressure for a rollback in spending in exchange for raising the borrowing limit.
Potential Debt Ceiling Deal Would Barely Change Federal Spending Path

Negotiators have focused on a relatively small corner of the budget, shunning new revenues or cuts to the fastest-growing programs
Yellen Warns of Missed Payments if Debt Limit Is Not Lifted

The Treasury secretary said the Biden administration would face “very tough choices” if Congress did not act.