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The US debt ceiling is the threshold Congress sets for federal borrowing.
Findings
Additional insights we found via The Wall Street Journal
If the US reaches this limit and Congress doesn’t pass a bill to raise it, the government cannot repay its debts.
Suddenly, investors would lose assurance that the Treasury would make good on its securities, which have long been considered the safest type of investment.
The US is one of two countries whose legislatures set a debt ceiling. The other is Denmark, but its borrowing limit is so high that it rarely has to be raised.
For the last three decades, a gridlocked Congress has approved more borrowing just before the Treasury runs out of money.
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