The United States has hit its debt ceiling, triggering a political battle in Congress.
The White House has sought to assure Americans that Congress will find a bipartisan solution to avoid a debt default.
That’s after the country hit its $31.4 trillion borrowing limit on Thursday last week.
Congress usually votes and agrees to raise the limit, as it did the last time in 2021.
But the standoff in Washington this time seems significantly riskier.
Some Republicans have declared they won’t raise the borrowing ceiling again unless President Joe Biden agrees to steep cuts in federal spending.
So what happens next?
And what effect does all this have on the global economy?
Presenter: Laura Kyle
William Lee, Chief Economist at the Milken Institute.
Laura Blessing, Senior Fellow, Government Affairs Institute at Georgetown University.
June Park, Schmidt Futures Asia fellow at the International Strategy Forum.