![]() ![]() The United States government makes millions of payments each day, but the overall economy would pay a far greater price if it were to miss payments on its debt, according to Mark Zandi, the chief economist at Moody’s Analytics. If the United States doesn’t raise the debt ceiling in time, the Treasury may have to decide whether to make interest payments to its debtholders or to pay its non-debt obligations, such as Social Security, veterans’ benefits, unemployment insurance, food stamps, and running government organizations like the military and the US Centers for Disease Control. If lawmakers fail to pass the tentative agreement, and they don’t raise the country’s debt limit by early June, the government may confront an unprecedented challenge: determining which bills to prioritize for payment as the Treasury Department grapples with insufficient funds. ![]() But a deal isn’t over yet: Congress still needs to vote on the deal – far from a guaranteed outcome – and President Joe Biden would need to sign it before the US defaults or misses a scheduled payment.Įvery day that passes without a bill to raise the debt ceiling, the probability of the United States reaching the critical date that it can no longer meet its financial obligations steadily grows. ![]() At long last, the White House and House Republicans have reached a tentative agreement to raise the debt ceiling. ![]()
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