United States debt ceiling
E59937
The United States debt ceiling is a statutory limit set by Congress on the total amount of money the federal government is authorized to borrow to meet its existing legal obligations.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
fiscal policy instrument
→
statutory limit → |
| administeredBy |
United States Department of the Treasury
→
|
| appliesTo |
Treasury securities
→
debt held by the public → federal government of the United States → intragovernmental holdings → |
| associatedWith |
debt-ceiling standoffs
→
negotiations over spending cuts → threats of government default → |
| bindingCondition |
when total federal debt reaches the statutory limit
→
|
| canBe |
raised to a new nominal level
→
suspended for a fixed period → |
| changedBy |
Debt ceiling increase legislation
→
temporary suspension legislation → |
| consequenceIfBreached |
Treasury cannot issue additional debt subject to limit
→
heightened risk of technical default → potential delay or reduction in federal payments → |
| constrains |
ability of Treasury to issue new debt
→
|
| controversy |
criticized as redundant given congressional control over spending and taxation
→
defended as a tool to force debate on federal spending → |
| country |
United States
→
|
| criticizedBy |
many economists
→
|
| criticizedFor |
creating recurring political crises
→
threatening global financial stability → |
| debatedBy |
Democratic Party (United States)
→
Republican Party (United States) → |
| excludes |
some short-term adjustments in Treasury cash management
→
|
| hasEffect |
can delay certain federal payments if binding
→
can increase financial market uncertainty → can trigger extraordinary measures by the Treasury → |
| historicalPrecedent |
Second Liberty Bond Act of 1917
→
|
| introduced |
early 20th century
→
|
| legalForm |
federal statute
→
|
| measuredIn |
U.S. dollars
→
|
| purpose |
to constrain growth of federal debt
→
to limit total federal borrowing → to require congressional approval for additional borrowing → |
| regulates |
Treasury borrowing authority
→
total amount of federal debt outstanding → |
| relatedTo |
United States federal budget
→
United States federal deficit → United States fiscal policy → credit rating of the United States → government shutdowns in the United States → risk of U.S. sovereign default → |
| requires |
congressional legislation to increase the limit
→
presidential signature for changes → |
| setBy |
United States Congress
→
|
Referenced by (1)
| Subject (surface form when different) | Predicate |
|---|---|
|
United States federal budget
→
|
relatedTo |