SAUL LOEB/AFP via Getty Images The White House has warned state governments that a potential failure of Congress to raise the debt limit would cause a nationwide recession.
In 2019, Congress suspended the debt ceiling — a measure that stops the federal government from taking on a certain level of national debt — for two years. However, the policy’s expiration occurred at the beginning of August — prompting Treasury Secretary Janet Yellen to enact “extraordinary” cash saving measures to fund the federal government.
As of August, the Treasury Department was expected to keep the government solvent for two or three months. […]