We’re exactly two weeks away from the August 2 deadline for lawmakers to raise the nation’s debt ceiling. If Congress can’t come to an agreement by then, the U.S. may default on its loans, and that could likely mean losing our Aaa bond rating. But with debt ceiling negotiations seemingly at a standstill, Moody’s Investor Service has suggested eliminating the debt ceiling altogether.
Donald Marron, director of the Urban-Brookings Tax Policy Center, endorsed the idea in an op-ed in the Christian Science Monitor. Louise Story, finance and Wall Street reporter for our partner, The New York Times, explains why we have a debt ceiling in the first place, and the potential impact of eliminating it.