U.S. expected to hit debt limit on Thursday, facing debt ceiling deadline

Senate Majority Leader Chuck Schumer announced a deal to extend the debt ceiling through early...
Senate Majority Leader Chuck Schumer announced a deal to extend the debt ceiling through early December.
Published: Jan. 19, 2023 at 5:44 AM EST
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LANSING, Mich. (WILX) - This morning the Biden Administration and House Republicans are at a stalemate as they face an initial debt ceiling deadline on Thursday.

The United States is expected to hit its legal borrowing capacity of $38.381 trillion, an artificially imposed cap that lawmakers have increased roughly 80 times since the 1960s according to the Associated Press.

Last week Treasury Secretary Janet Yellen said that the Treasury Department will take “extraordinary measures” to keep paying bills.

That means extending the deadline to early June for congress to raise the debt ceiling to pay back the money the government has already spent.

House Speaker Kevin McCarthy is backing a push by republicans to demand spending cuts as part of any debt ceiling deal.

Failure to reach a deal would mean sometime this summer the U.S. would default on its loans for the first time in history setting off a financial doomsday scenario.

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