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.
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Swedish buy now, pay later company Klarna is making its highly anticipated public debut on the New York Stock Exchange Wednesday, the latest in a run of high-profile initial public offerings this year. The offering priced at $40 Tuesday, above the forecasted range of $35 to $37 a share, valuing the company at more than $15 billion. The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. Other popular IPOs so far this year include the design software company Figma and Circle Internet Group, which issues the USDC stablecoin..
Oracle co-founder Larry Ellison wrested the title of the world’s richest man from longtime holder Elon Musk early Wednesday as stock in his software giant rocketed more than a third in a stunning few minutes of trading. That is according to wealth tracker Bloomberg. A college dropout, the 81-year-old Ellison is now worth $393 billion, Bloomberg says, several billion more than Musk, who had been the world’s richest for four years. The switch in the ranking came after a blockbuster earnings report from Oracle. Forbes still has Musk as the richest, however, valuing his private businesses much higher.
Aurimas Sabulis, CEO of Dextall, unveils how AI‑driven prefabricated façades slash design time by 80%, labor by 87%, and accelerate affordable housing delivery.
