America Hit Its Debt Limit, Raising Economic Fears

January 20, 2023

WASHINGTON — The United States hit its debt limit on Thursday, prompting the Treasury Department to begin using a series of accounting maneuvers to ensure the federal government can keep paying its bills. Most Democrats have solidified in their position that negotiations over the debt limit only enhance the risks of economic calamity by encouraging Republicans to use it as leverage. Many House Republicans call current spending levels and the debt load a threat to economic growth. The cost of not raising the borrowing cap could be catastrophic, causing a deep recession in the United States and potentially prompting a global financial crisis. Asked if she believed Republicans saw it as their responsibility to raise the limit and avoid a default, she replied, “They should.”The post America Hit Its Debt Limit, Raising Economic Fears appeared first on New York Times.