The Truth Behind the Debt Ceiling Stand-Off.

President Joe Biden and House Speaker Kevin McCarthy are in a standoff over whether to increase the federal debt ceiling. Republicans say they won't support raising the limit without assurances from Democrats that they'll support spending cuts. Defaulting on the federal debt could inflict pain across the country, including the stock market, job cuts, and losses in savings and pension funds. Moody's warns that credit rating agencies would downgrade U.S. debt, causing ripple effects through the financial system and Americans' jobs and finances. Checks from the federal government could be temporarily stopped for Medicare benefits, Social Security, military salaries, tax refunds, federal workers, and federal contractors.