Treasury Secretary Janet Yellen warned that the U.S. will reach its $31.4 trillion borrowing cap on Thursday.
The debt limit is the total amount of money the U.S. government is authorized to borrow. Once the limit is reached, the Treasury must take extraordinary measures, essentially accounting maneuvers, to prevent the U.S. from defaulting.
In a letter addressed to House Speaker Kevin McCarthy last week, Yellen warned that she’d be implementing two extraordinary measures to give lawmakers more time. However, extraordinary measures can only be used for a limited amount of time.
“It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit,” Yellen wrote. ”Failure to meet the government’s obligations would cause irreparable harm to the U.S. economy, the livelihoods of all Americans, and global financial stability.”
Republicans and Democrats are at odds over how to handle the debt ceiling.
McCarthy told President Joe Biden that Republicans would temporarily raise the debt ceiling in exchange for a spending cap. The Speaker asked to meet with lawmakers to begin negotiations.
“I would like to sit down with all the leaders and especially the president and start having discussions,” McCarthy told reporters Tuesday.
But, White House Press Secretary Karine Jean-Pierre said Biden was not interested in this sort of negotiation..
“As President Biden has made clear, Congress must deal with the debt limit and must do so without conditions,” the Press Secretary told reporters.
Former Cisco Systems CEO John Chambers learned all about technology’s volatile highs and lows as a veteran of the internet’s early boom days during the late 1990s and the ensuing meltdown that followed the mania. And now he is seeing potential signs of the cycle repeating with another transformative technology in artificial intelligence. Chambers is trying take some of the lessons he learned while riding a wave that turned Cisco into the world's most valuable company in 2000 before a crash hammered its stock price and apply them as an investor in AI startups. He recently discussed AI's promise and perils during an interview with The Associated Press.
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Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
