The Impending Debt Ceiling Crisis: What Could Happen Next?

Congress has until June 1 to raise the debt ceiling and prevent the US from defaulting, which could destabilize global markets and devastate the economy. There are five possible outcomes: Biden and House Speaker Kevin McCarthy reach a deal on the debt ceiling; rank-and-file lawmakers make an end run around congressional leadership; Congress passes stopgap legislation to delay a default; the White House acts unilaterally to resolve the crisis; or the United States defaults. A default would lead to a stock market crash, driving up unemployment and pushing untold numbers of companies out of business, and a recession would be all but assured.