By Team Cultsbyte

US Hits Debt Limit :- This Is What You Need To Know

On Thursday, the United States reached its debt ceiling, which is the maximum sum of money the federal government is permitted to borrow.

Flight Path

They essentially serve as accounting instruments that provide the government the ability to temporarily continue funding routine operations and aid in buying Congress more time to come to an agreement. 

Although this means the nation would be able to avoid defaulting on its debt for the time being, the implications would be severe if that did finally happen for the first time. 

A "debt issuance suspension period" would start on Thursday and extend until June 5, according to Yellen's letter.

According to Yellen, it is doubtful that the Treasury's cash and measures will run out before the beginning of June.