The Impending Consequences of the U.S. Debt Limit Default

The U.S. Congress and White House are facing a June 1 deadline to resolve a debate over the debt ceiling, which could lead to a "protracted" default and trigger a Great Recession type of scenario. Failing to lift or suspend the debt ceiling would lead to “economic and financial catastrophe,” darkening a U.S. economic outlook already clouded by elevated inflation, high interest rates, and unease in the banking industry. The debt ceiling is a legal limit on how much debt the U.S. Treasury is allowed to issue.