US Debt Ceiling: What is US X-debt ceiling, how it is determined

US Debt Ceiling: After Biden's statement that the deadlock between the two parties is over, it is expected that the US can compromise on the debt ceiling budget and increase the debt limit. However, talks are still going on between the two parties.

May 28, 2023 - 12:34
US Debt Ceiling: What is US X-debt ceiling, how it is determined

US President Joe Biden recently said on Debt Ceiling that the deadlock between Democratic and Republican lawmakers on this issue is about to end.

Biden said that America will not default on debt repayment. America has to repay the debt by June 5, the date of which was earlier mentioned as June 1.

After Biden's date ceiling statement, there may be an agreement on the budget soon. After this agreement, it is expected that the US will take more than the fixed debt limit. Because of this, she can avoid default by repaying the old loan.

Let us tell you that if the US defaults, then it is bad for America as well as the expectation of global recession once again will increase in the world.

US Treasury Secretary Janet Yellen had said that the X-date for the US to run out of money has now increased to June 5, which was earlier June 1, but this does not mean that the seriousness of the matter is over.

The date on which the US government will default due to lack of money is commonly referred to as the X-date. Janet Yellen has clearly said that if the US government is not able to find a solution to the budget by the X-date, then the American people may face a lot of trouble.

Looking at the situation, it can be said that at present the only option left for America to avoid default is to increase the debt limit.

But to increase the debt limit, the proposal has to be passed in both houses of the US. Biden's party has a majority in only one house to pass the proposal, while the Republican Party has a majority in the other house.

However, at this time, Biden's party is continuously in talks with the opposition to get this proposal passed by rising above politics.

Muskan Kumawat Journalist & Writer