Market Extra: What happens if the U.S. defaults on its debt?

September 30 marks the end of the federal government’s fiscal year, and the deadline for Congress to pass a funding measure. The debt ceiling, which is the amount of money the Treasury Department is authorized to borrow, must be suspended or raised by mid-October, or the United States likely will default on its debt.

September 30 marks the end of the federal government’s fiscal year, and the deadline for Congress to pass a funding measure. The debt ceiling, which is the amount of money the Treasury Department is authorized to borrow, must be suspended or raised by mid-October, or the United States likely will default on its debt.