Investors Optimistic That US Debt Limit Will Be Raised
- Rene Raymond
- May 25, 2023
- 1 min read
The debt limit, or debt ceiling, is the amount of money the US government is allowed to borrow to cover it's legal obligations, such as Social Security, Medicare, military salaries and tax refunds.
According to the Treasury Department, the US could run out of money to cover it's bills as early as June 1. This would send the country into a financial crisis affecting the value of the dollar, cause banks to pull back on lending and significantly increase interest rates.
White House negotiations are inching closer to an agreement that would raise this debt ceiling and avoid a financial catastrophe. Even if/when the deal is reached, this close call could still have an effect on the economy.
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