The amount of debt the government has lent is further challenged by higher rates and inflation, and the daily life of financiers, investors, and citizens should feel more hindered in the current economic environment.

In January, the U.S. technically reached its debt limit ceiling; however, The Treasury Department announced that it could continue to pay the bills using “extraordinary measures” until early June. The federal debt stands at an astonishing 31 trillion dollars, putting the burden of 94 thousand dollars on every American citizen.

The U.S. government has taken precautions to extend, revise, or permanently change the debt limit 78 times since 1960. Now as Biden looks for a solution with no loose strings, the probability of a never before seen default-on-debt situation could be presented in the capital’s palms. Members of Congress, bankers, and economists have debated this frightening anomaly.

The question is, what happens now if the debt ceiling is violated?

3 Ways Investors Will Get Affected by a Higher U.S. Debt Ceiling

As the country’s financial crisis ripples down on all American citizens, an appreciable increment in interest rates will be observed.

1. Greater Borrowing Costs

With the delicate economic conditions, interest rates are bound to rise as previously mentioned, and hurt the steady treasury incomes.

2. Less Appealing Bonds

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