The United States has reached a debt ceiling, which has sparked a political battle in Congress.
The White House has tried to reassure the American people that Congress will find a second solution to avoid defaulting on the debt.
That’s when the country managed to borrow $31.4 trillion on Thursday last week.
Congress often votes and agrees to raise the limit, as it last did in 2021.
But Washington’s standing this time around looks very dangerous.
Some Republicans have announced that they will not raise the debt ceiling again unless President Joe Biden agrees to reduce federal spending.
So what happens next?
So how does all this affect the global economy?
Presenter: Laura Kyle
William Lee, Chief Economist at the Milken Institute.
Laura Blessing, Senior Fellow, Government Affairs Institute at Georgetown University.
June Park, Schmidt Futures Asia partner at the International Strategy Forum.