US hits borrowing limit, kicking off fight between Republicans and Democrats – as it happened
Biden and Democrats want to raise limit without conditionsWhat is the US debt ceiling and what happens if it isn’t raised?Sign up to receive First Thing – our daily briefing by emailUrban Institute economist Len Burman has a reality check for those in Congress flirting with not raising the debt ceiling.A default could undermine the America’s pre-eminence in global markets, where the dollar is used as many countries’ dominant reserve currency. But more immediately, it would actually force Washington to spend even more, because a default would drive up interest rates, forcing the government to shell out more money to owners of its trillions of dollars in debt:
