BBC, By Natalie Sherman
Business reporter, New York
The US has hit its debt limit, with the Treasury Department now taking measures to prevent a potentially devastating default.
Reaching the debt ceiling means the government is not allowed to borrow any more money – unless Congress agrees to suspend or change the cap, which currently stands at almost $31.4tn (£25.4tn).
Typically that is what happens.
The stand-off on the issue in 2011 prompted the S&P credit ratings agency to downgrade the country’s rating – a first for the US.
Government analysts have estimated that delays that year caused the cost of borrowing for the US Treasury to increase by at least $1.3bn, as investors demanded higher rates due to the uncertainty.
Analysts are already expecting debate on the issue this year to make financial markets jumpy.