U.S. Debt Ceiling Crisis Looms: Urgent Action Needed

The U.S. risks default on its $36.6 trillion debt between mid-July and October unless Congress raises its borrowing cap. Lawmakers have delayed action before, causing market turbulence. A bipartisan think tank warns the issue must be prioritized to avert economic consequences. The exact deadline remains uncertain, influenced by tax flows and other factors.

The United States could default on some of its $36.6 trillion in debt as early as mid-July, if Congress does not act to raise the borrowing limit. This was the warning issued by the Bipartisan Policy Center think tank on Monday, highlighting the urgency for congressional action.

Historically, lawmakers have stalled decisions on extending the debt ceiling, creating market upheavals and leading to a downgrade in the U.S. government's credit ratings. These delays occur despite Congress's role in raising debt through increased spending and tax cuts.

The Congressional Budget Office will provide its own projected deadline this week for when the Treasury Department will be unable to meet its obligations. With financial markets wary of potential default risks, experts urge immediate legislative attention to stabilize economic conditions.

(With inputs from agencies.)