Debt ceiling refers to a authorized restrict on the quantity of debt {that a} authorities can borrow. When the debt ceiling is reached, the federal government is unable to borrow any extra money to satisfy its monetary obligations, resembling paying its payments or offering important companies.
The debt ceiling for 2025 has not but been set. Nonetheless, it’s prone to be a major subject within the coming years, because the federal authorities’s debt is projected to proceed to develop. The debt ceiling has been a contentious subject previously, with some arguing that it’s essential to regulate authorities spending and others arguing that it’s dangerous to the financial system.
