News

What is the U.S. debt ceiling and why it’s important

Published

3 years ago

January 19, 2023

The United States’ national debt is set to default on Thursday.

In a letter sent to lawmakers, U.S. Treasury Secretary Janet Yellen warned that the U.S. is expected to hit its $31.4 trillion debt limit this week.

Congress is working on the issue, but it remains to be seen if lawmakers on Capitol Hill will actually raise the debt ceiling.

The debt ceiling is the amount of money the U.S. is allowed to borrow to pay for its vast commitments.

Basically, in the U.S., the debt ceiling or debt limit is a legislative limit on the amount of national debt that can be incurred by the U.S. Treasury.

This limits how much money the federal government can pay on the debt they already borrowed.

Currently, the U.S. government borrows large sums of money in order to cover all of its expenses. However, decades ago, Congress created the debt ceiling in an effort to avoid having to approve each new debt individually.

Since then, lawmakers have raised the debt ceiling dozens of times. When this happens—Congress allows the government to take on enough debt to settle the spending obligations it has already made.

If Congress is unable to raise the debt limit in time, the U.S. can only use incoming cash to pay its current commitments which in effect would create a large deficiency.

This is the first debt limit fight since Republicans took control of the House. So far, House Speaker Rep. Kevin McCarthy has signalled that he might leverage the negotiations in order to secure deep spending cuts.

But President Joe Biden and a Senate controlled by Democrats strongly oppose spending cuts.

Related Topics:Business Featured Politics world

Up Next

German police not “extras for Greta Thunberg”

Don't Miss

New push to free Alexei Navalny

Veronica Dudo

Veronica Dudo is the U.S. Correspondent for Ticker News covering America’s biggest headlines. As an Emmy® Award nominated global journalist, Veronica has traveled across the country and around the world reporting on historical events that connect all citizens. Lauded as an award-winning international journalist, Veronica has executed stellar news coverage for NBC News, CBS News, The Hill, ME-TV Network and AOL. Her stories have highlighted a plethora of topics ranging from breaking news and politics to economic affairs across the USA, European Union, and Asia; cultural affairs; globalization; governance; education; and sustainability.

News

Senate clears Epstein files release despite White House push

Senate upholds vote to release Epstein files despite White House delay attempt; Trump signals intent to sign bill.

Published

4 hours ago

November 20, 2025

ticker NEWS

Senate upholds vote to release Epstein files despite White House delay attempt; Trump signals intent to sign bill.

The White House tried to delay a vote on the release of Justice Department files connected to Jeffrey Epstein, even as former President Trump insisted there was nothing to hide.

Despite this, the Senate approved the measure exactly as it passed the House, ignoring amendments proposed by Trump’s aides. This move clears the path for the files to be made public in full.

Trump has indicated he intends to sign the bill, marking a significant shift after the White House’s attempt to block or delay the vote proved unsuccessful. The decision could have wide-reaching implications for transparency and ongoing investigations.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#EpsteinFiles #WhiteHouse #Trump #SenateVote #JusticeDepartment #USPolitics #Transparency #TickerNews

News

Nvidia earnings shake tech stocks as ASX heads into Christmas

Nvidia’s earnings spark sharp market reactions, prompting investor concerns for tech stocks and volatility ahead of year-end trading.

Published

5 hours ago

November 20, 2025

ticker NEWS

Nvidia’s earnings spark sharp market reactions, prompting investor concerns for tech stocks and volatility ahead of year-end trading.

Markets are reacting sharply to Nvidia’s latest earnings, leaving investors questioning the future of tech stocks. Analysts are closely watching whether the results meet expectations and what it could mean for the broader market.

Joining us is David Scutt from StoneX to break down Nvidia’s post-earnings performance and its ripple effects across US and global equities. Investors are keeping a keen eye on how this could set the tone for year-end trading.

With Christmas approaching, the ASX faces a pivotal day as global risk sentiment shifts. Traders are positioning themselves for potential volatility, making it critical to understand the signals coming out of major tech earnings.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#NvidiaEarnings #TechStocks #StockMarket #ASX #GlobalMarkets #Investing #MarketUpdate #TickerNews