The United States is facing a potential default between mid-July and early October if Congress does not increase the debt ceiling.
US Struggle Over Debt Ceiling
The Bipartisan Policy Center estimated that without a new increase in the debt ceiling, the US might run out of funds by late summer or fall. Republicans are in tense negotiations: some see the need to raise the ceiling, others advocate for alternative solutions.
CBO Warnings on Potential Outcomes
Congress received warnings that if April tax receipts fall short, cash might run out sooner than the projected X-date. The CBO also warned that if Trump's tax cuts remain, debt could rise to unprecedented levels.
Analysts Predict Debt Crisis
Economic experts believe that if the US debt surpasses 200% of GDP, the country may be engulfed in a debt crisis that's hard to recover from. The Penn Wharton Budget Model expressed concern over this possibility, warning of a growing threatening situation.
Experts emphasize that the US debt situation requires immediate action and prudent decision-making. Without this, the country's long-term economic prospects could suffer significantly.
