Could Congress prevent US debt ceiling disaster?

Concerns that the federal government could hit its debt ceiling spiked after Treasury Secretary Janet Yellen sent a letter to party leaders in Congress urging them to raise the debt limit before the expected deadline on Thursday.

Congress can prevent economic disaster by increasing or suspending the limit, as they have done several times in the past. However, House conservatives are threatening to delay the process by demanding deep spending cuts a Democratic Senate and White House have already signaled they won’t accept.

Economic experts say failure to raise the ceiling would have national and worldwide economic consequences, with impact felt by Americans in numerous ways.

The debt ceiling is the maximum amount the US government can spend to pay its existing obligations, including Social Security and military salaries.

If Congress fails to raise the debt ceiling, the government would automatically default on its payments. In the more than 100 years since the limit was enacted, this has never happened.