What is US debt ceiling ?

The U.S. debt ceiling, also known as the debt limit, is the maximum amount of debt that the U.S. government is legally allowed to borrow to fund its operations and meet its financial obligations. It is a cap on the total amount of outstanding debt that the U.S. Treasury can issue to the public, including Treasury bonds, bills, and notes.

The debt ceiling is set by Congress through legislation and represents the cumulative amount of money the government has borrowed over time. It is intended to limit the government's ability to accumulate excessive levels of debt without explicit approval from Congress.

When the U.S. government reaches the debt ceiling, it is unable to issue new debt to meet its obligations unless Congress passes a bill to raise or suspend the debt ceiling. If the debt ceiling is not raised or suspended and the government exhausts its available cash, it may face a potential default on its financial obligations, such as interest payments on Treasury bonds, Social Security benefits, and payments to government contractors.

Raising or suspending the debt ceiling has been a recurring topic of debate and negotiation in Congress, as it involves discussions on fiscal policy, spending priorities, and overall government debt levels. Failure to raise the debt ceiling in a timely manner can have significant consequences for the U.S. economy and financial markets, as it can undermine confidence in the U.S. government's ability to meet its financial obligations.