Economic Policy

7 doomsday scenarios if the U.S. crashes through the debt ceiling

Economists warn of worst-case outcomes should Congress fail to raise the federal borrowing limit by the “X-date” deadline

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May 14, 2023 at 6:00 a.m. EDT
A collage with the capitol building.
(Illustration by Elena Lacey/The Washington Post; Eric Lee/Bloomberg; Jabin Botsford; Matt McClain)
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10 min

Federal workers furloughed. Social Security checks for seniors on hold. Soaring mortgage rates. A global financial system sent reeling.

Leaders from Congress and the White House are trying to forge an agreement to lift the federal debt ceiling, with only a few weeks before the Treasury Department may no longer be able to avert an unprecedented U.S. default. If they fail, and the government can’t meet its payment obligations, economists and financial experts predict chaos.

What to know about the U.S. debt ceiling

The latest: The House and Senate passed a debt ceiling deal as lawmakers rush to avert a disastrous government default on June 5, sending the bill to President Biden to sign into law. See how each member of the House and Senate voted. If the debt ceiling isn’t raised by the deadline, here’s what a government default means and the payments at risk.

Understanding the debt ceiling fight: Biden and the House Republican leadership have been on a collision course over the national debt limit. In this comic, see how hitting the debt ceiling could unleash chaos. Here’s when the debt ceiling battle could end.

What is at stake? Invoking the 14th Amendment to dodge the debt limit is risky, White House officials say, although Biden has floated it as an option. If the debt limit is breached, Biden warned that it could send the U.S. economy into a free fall. Amid consumer anxiety over the uncertainty, financial experts warn against making fear-based decisions.