America Set to Hit Its Borrowing Limit Today, Raising Economic Fears

WASHINGTON — The United States is expected to hit a congressionally imposed borrowing limit on Thursday, requiring the Treasury Department to engage in 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 Set to Hit Its Borrowing Limit Today, Raising Economic Fears appeared first on New York Times.