The debt ceiling, which has recently been raised in the United States, the world's largest economy, is one of the issues closely followed by financial markets. In particular, the failure to decapitate the crisis as a result of the dispute between the government and the Congress is of great importance for markets due to the risks of default and recession.

In the United States, the debt ceiling term is used to limit the debt that the treasury can get into. The treasury has the authority to borrow until reaching a ceiling determined by the US Congress according to the law. Once they reach this ceiling, the relevant law must be passed and permission must be obtained from Congress to increase this ceiling again.

The upper limit on debt was set for the federal government as $ 28.4 trillion in 2019, which can be increased or decreased by the relevant law. The debt ceiling, controlled by the US Congress, has been raised 78 times since 1960. This was previously occured 49 times during the Republican term and 29 times during the Democrats term.
The adoption of the regulation requires the 'yes' vote of 60 senators in the Senate. As a result, Democrats need to get at least 10 'yes' votes from the Republican Party. So far, no Republican Senators have backed the proposal.

The issue, which heated up on the agenda when US Treasury Secretary Janet Yellen sent a letter to Congress informing that she would reach the debt ceiling on October 18, does not seem to be resolved as House Speaker Nancy Pelosi announcing that they will discuss alternative methods. At this point, it is an important element for Republicans in the House of Representatives to complicate the compromise by drawing attention to the high debt rate.
A statement from the White House warned that millions of people could lose their jobs if the ceiling does not rise, while Treasury Secretary Yellen said, "nearly 50 million seniors could stop receiving Social Security." Seniors could see their Social Security payments delayed, soldiers would not know when their paychecks were coming, and interest rates on credit cards, car loans, and mortgages would rise, making payments more costly, she warned. She also suggested that a default would jeopardize the dollar’s status as the international reserve currency, which Democrats argue would be a gift to China.

In the event that the debt ceiling crisis is not resolved, a government shutdown seems inevitable. In other words, it is foreseen that treasury may go into default due to its inability to fulfill financial obligations. Among the possible solutions, there is also a proposal by minting a $1 trillion platinum coin. However, it is not believed to be a good method.

As a result of the intensive effort put forward by US President Joe Biden, who canceled his visit to Chicago yesterday during the US session, to suspend the debt ceiling and prevent the federal government shutdown, the bill submitted to the US House of Representatives was passed by 219 to 212.

Kurt Schrader and Jared Golden, who voted against the bill that would suspend the country's debt limit until December 17, 2022, while Adam Kinzinger was the only deputy who received support from the Republicans. It seems likely that the bill to suspend the debt limit, which will be moved to the US Senate, will face the Republican obstacle.