Debt Default Warning Amid Rising US Debt Ceiling

The Bipartisan Policy Center warns that the U.S. could face a debt default as early as mid-July, extending potentially to October, unless Congress raises the $36.1 trillion debt ceiling. This situation has arisen due to Congress's past decisions to authorize new spending and tax cuts, pushing the national debt higher. Lawmakers have been urged to act swiftly to prevent market volatility and higher borrowing costs, reminiscent of a 2023 scenario that negatively impacted the U.S. credit rating. The Treasury Department is currently using extraordinary measures to manage financial obligations, but these are not a long-term solution. As the situation unfolds, tax revenues and economic factors will significantly influence the precise 'X-Date' when the government will be unable to meet its financial commitments.