President-elect Donald Trump has called for Congress to eliminate the debt ceiling entirely, asserting that it should be addressed before he takes office. He believes this move would prevent potential economic crises during his administration and criticized a proposed funding deal that did not include provisions related to the debt limit. Trump's stance has disrupted ongoing negotiations, with him stating there will be no agreement unless the debt ceiling is resolved first[1][11][13].
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Trump shakes up spending talks with call on Congress to eliminate debt ceiling
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Republicans look to push government funding fight into Trump's term in early 2025
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Donald Trump hopes a Republican challenges U.S. Rep. Chip Roy over debt ceiling opposition
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https://www.hindustantimes.com/worl...s-us-govt-shutdown-looms-101734640004317.html
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Last-Minute Fighting Delays Release of Short-Term Funding Bill Just Days before Deadline – Take Action!
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https://www.ourmidland.com/news/pol...out-the-debt-ceiling-debate-as-a-19991049.php
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Trump Tossed a Debt Limit Grenade Into Spending Talks. Here’s Why.
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https://www.politico.com/live-updates/2024/12/02/congress/government-funding-sprint-00192190
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What is the debt ceiling? Here's why Trump wants Congress to abolish it before he takes office
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Upcoming Congressional Fiscal Policy Deadlines | Committee for a Responsible Federal Budget
[11]
Trump threatens government shutdown unless debt limit demand met, blames Biden if it happens
[12]
Congress releases short-term funding bill as deadline nears to avert a holiday shutdown
[13]
Trump calls for abolishing the debt ceiling
[14]
Congress faces shutdown dilemma that could mess with Trump's first 100 days
Failing to raise the debt ceiling can have significant and severe economic repercussions for the United States. The debt ceiling is a limit set by Congress on the amount of money that the federal government is allowed to borrow to cover its existing legal obligations.
If the ceiling is not raised, the government may default on its debt, leading to several potential consequences.
First, a default could undermine confidence in U.S. Treasury securities, which are considered one of the safest investments globally. This could lead to higher borrowing costs for the government, as investors demand higher interest rates to compensate for increased risk.
Second, a default could trigger a financial crisis, as it would disrupt global financial markets. Many financial institutions and governments hold U.S. debt, and a default could lead to widespread sell-offs and instability.
Third, the potential for missed payments to federal employees, Social Security beneficiaries, and other obligations could lead to a significant decline in consumer confidence, resulting in decreased spending and economic activity.
Finally, the U.S. dollar's status as the world's reserve currency could be jeopardized, which would have long-term implications for the U.S. economy and its global standing.
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