Ational Borrowing Limit News Today

The White House and congressional leaders are working to ensure passage in time to lift the nation's borrowing limit and prevent a U.S. default.

US Treasury Secretary Janet Yellen warns of financial and economic chaos unless Congress acts to raise the debt ceiling. The impasse raises the risk of a default with severe consequences for the US and global economies.

The US House of Representatives passed the Limit, Save, Grow Act, which would raise the national borrowing limit but with drastic spending cuts. However, the bill will not become law as it is opposed by the Democratic-led Senate. This legislation is a political maneuvering that impacts the economy, federal debt, budget deficit, and fiscal responsibility, and could potentially lead to a financial crisis, government shutdown, and financial instability.