Debt ceiling refers to a authorized restrict on the quantity of debt {that a} authorities can borrow. When the debt ceiling is reached, the federal government is unable to borrow any extra money to satisfy its monetary obligations, corresponding to paying its payments or offering important providers.
The debt ceiling for 2025 has not but been set. Nevertheless, it’s more likely to be a major difficulty within the coming years, because the federal authorities’s debt is projected to proceed to develop. The debt ceiling has been a contentious difficulty up to now, with some arguing that it’s essential to manage authorities spending and others arguing that it’s dangerous to the financial system.
