The United States is currently facing the threat of national debt default if Congress does not promptly raise the national debt ceiling, which has reached USD 36.1 trillion. The Department of the Treasury is using "extraordinary measures" to maintain payments, but those funds are expected to be depleted by August 2025. The political deadlock between President Donald Trump and Congress, particularly regarding the proposal to raise the debt ceiling accompanied by tax cuts, exacerbates the situation.
Economists and financial figures like Elon Musk and Ray Dalio have criticized Trump's fiscal plan as it is deemed to increase the deficit and long-term financial risks. Moody's has even downgraded the US credit rating. If a default does occur, the impact could shake global markets, decrease the value of the dollar, and increase borrowing costs. The Secretary of the Treasury emphasized the importance of reaching an agreement before mid-July to keep the US economy stable and credible in the eyes of the world.
