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U.S. approaches debt ceiling


Treasury Secretary Janet Yellen Associated Press/Photo by Patrick Semansky (file)

U.S. approaches debt ceiling

Majority Leader Chuck Schumer, D-N.Y., threatened to keep the Senate in session over the weekend to wrap up negotiations on an infrastructure deal before the August recess. Now, Treasury Secretary Janet Yellen has added another item to Congress’ list: The government’s borrowing authority is set to expire on July 31. She said Congress must either raise or suspend the debt ceiling, which currently stands at $28.5 trillion, or risk a federal default. The United States has never defaulted, partially because it has raised the debt ceiling numerous times. Yellen said she will start taking “emergency measures” such as suspending state and local government securities, starting July 30 if Congress doesn’t act.

What are the options? Republicans are lobbying for spending reforms such as cutting Social Security spending in exchange for raising the debt ceiling. Democrats could try to raise the ceiling in a budget reconciliation bill, which would not need any Republican support in the Senate. It’s not clear yet how Democrats will move forward and the extent to which the GOP will use the debt ceiling as bargaining power.

Dig deeper: Listen to financial analyst David Bahnsen’s take on the federal debt.


Carolina Lumetta

Carolina is a reporter for WORLD Digital. She is a World Journalism Institute and Wheaton College graduate. She resides in Harrisburg, Pa.

@CarolinaLumetta

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OldMike

That kind of attitude isn’t helpful, NEWS2ME. If we just roll over and give up we are letting our children and grandchildren down. As well as ourselves.

There’s an election coming up next year, and that’s a chance to motivate and push decent people to support decent candidates, with a possibility of turning things around. And 2 years after that there is another election with more opportunities for change. But if we all just say, “what’s the point of caring?” the crazy minority will have subdued the decent majority without even having to break a sweat! You don’t want that, I don’t want that, I believe 75% of Americans don’t want that.

Conservatives only need to take a few House races away from the Dems to unseat Nancy Pelosi. You may say “They will just steal the election,” but that is only possible if enough of us say “What’s the use of fighting it.”

DON’T GIVE UP!

NEWS2ME

What is the point of discussing this, caring, or worrying?
As in everything, DC does what it wants no matter what.
They have an agenda and they will spend someone else's money to do it at all costs.