As predicted by Treasury Secretary Janet Yellen, on January 19 the US hit debt ceiling, the maximum amount he can borrow to pay his bills. The up to $31.4 billion is expected to cause a debate in Congress on whether to increase or stop the limit to help the country to meet its financial obligations.
Congress has changed the debt ceiling 78 times since 1960, so this is not completely uncharted territory. What’s different this time is the legislation recently used by House Republicans to make it harder to raise the cap and give Republicans more power over spending cuts. President Biden has promised that he will fight any demand for cuts, which could lead to a long battle.