The Congressional Budget Office (CBO) just released a report outlining its economic projections for 2023 to 2033, which included a warning that the US could default on its debt as soon as July if the debt ceiling isn't raised by then. Previously, Treasury Secretary Janet Yellen said measures to keep the US funded would run out at some point this summer. The GOP is in the process of negotiating spending cuts to raise the debt ceiling. Defaulting on the nation's debt would be unprecedented, with severe economic consequences, including a potential inability to issue payments to millions of Americans, including seniors who rely on Social Security, and an increased cost of borrowing into perpetuity. Speaker of the House Kevin McCarthy has assured that defaulting on the debt is not an option, but negotiations are still ongoing. It remains to be seen how the debt ceiling will be raised and what spending cuts may be implemented.
CBO projects US debt ceiling must be raised by July or risk default