Debt Limit Crisis Looms as Congress Returns to Session.

Despite the possibility of Congress not raising the nation's borrowing limit in time to avoid an economically catastrophic default, Wall Street remains unfazed. Investors continue to trade stocks and Treasury bonds under the assumption that Congress and President Biden will find a way to avoid a calamitous government default. However, new warnings suggest that lawmakers might have less time to raise the $31.4 trillion limit than previously thought. Republicans are refusing to raise the borrowing cap unless Mr. Biden agrees to reduce government spending and slow the growth of the national debt, a position that risks plunging the United States into recession if the Treasury Department runs out of money to pay all its bills on time.