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U.S. could be weeks away from hitting debt limit, report shows

By Megan Hadley
U.S. could be weeks away from hitting debt limit, report shows
"Congress would be flirting with financial disaster if it leaves for the holiday recess without addressing the debt limit," said Shai Akabas, Bipartisan Policy Center director of economic policy. Photo by Bonnie Cash/UPI | License Photo

Dec. 3 (UPI) -- The United States could be weeks away from the debt limit "X date," when the government will no longer be able to pay its bills, a report from the Bipartisan Policy Center said Friday.

The BPC predicted the "X Date" to be between Dec. 21 and Jan. 28.

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In a previous projection, BPC predicted the date would fall anywhere from mid-December to February. However, based on more recent data, they moved the date up.

To avoid "serious consequences" the BPC recommended policymakers take action before the end of the current congressional session.

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"Those who believe the debt limit can safely be pushed to the back of the December legislative pileup are misinformed," Shai Akabas, BPC director of economic policy, said in a press release.

"Congress would be flirting with financial disaster if it leaves for the holiday recess without addressing the debt limit."

Congress returned this week to a mounting plate of issues, including the debt ceiling.

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In October, the Senate voted to kick the debt ceiling can down the road, approving a temporary extension until December after Republicans threatened to filibuster its increase because of the Democrats' efforts to pass President Joe Biden's agenda bill through the budget reconciliation process.

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Now, the Senate must pass a new debt ceiling bill by Dec. 15.

According to the BPC, failing to extend the nation's debt limit would be "an unprecedented event in modern American history" that carries "grave risks."

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"[We] could send immediate ripple effects throughout the global economy, particularly during a time of economic recovery and heightened uncertainty over a new COVID-19 variant," the report said.

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