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Published: Jan 24, 2023 3 min read

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With a debt limit fight looming in Congress, one leading expert is warning of catastrophic damage to the economy and major losses in the stock market if lawmakers are unable to avert a default.

What’s happening now

Last week, the United States officially hit the debt limit — the cap on the amount of money the government is allowed to borrow to meet all of its financial obligations. Those obligations include money that’s due to government bondholders and creditors as well as Social Security and Medicare payments, salaries for the military and tax refunds and more.