The House overwhelmingly passed a bill Wednesday to permit the government to borrow enough money to avoid a first-time default for at least four months, defusing a looming crisis setting up a springtime debate over taxes, spending and the deficit.
Stock markets traded cautiously on Wednesday ahead of a U.S. vote on raising the nation's borrowing limit temporarily. The House is set to vote on a motion to increase the nation's $16.4 trillion borrowing ceiling for three months.
The Republican-controlled House will vote next week to permit the government to borrow more money to meet its obligations, a move aimed at heading off a market-rattling confrontation with President Barack Obama over the so-called debt ceiling.
The U.S. annual budget deficit is on track to reach $1 trillion for a fifth straight year, though government revenue jumped last month as people paid some taxes early to avoid higher rates in 2013.
Last week's fiscal cliff deal did much to resolve the dark specter of economic uncertainty in America. However, it was only the first of three fiscal crises set to hit before March. Next on deck, another sequestration battle; and then the biggie: "Debt Ceiling 2: The Tea Party Strikes Back."
When the fiscal cliff deal finally passed, the Dow Jones industrial average surged. But that doesn't mean the volatility is over. In fact, there could be more turmoil in the market soon because decisions on cutting the federal budget deficit have been put off until March, when the government will reach its borrowing limit.
Legislators show no signs they're heading toward compromise in resolving the nation's next financial crisis, with Democrats talking about further taxes hikes on the rich, and Republicans saying a crippling default on U.S. debt is possible unless they get significant cuts in government spending.
The fiscal cliff has been averted -- at least for now. But if we've managed to dodge one devastating, intentionally-created crisis, there are plenty more massive problems on deck. Here's a list of the next six ways Washington could mess things up for tens of millions of Americans.
The fiscal cliff compromise on taxes leaves critical issues of borrowing, spending and budget cutting unaddressed, and lawmakers have given themselves only two months to settle their differences. Here's a look at what's been resolved and what they left hanging.
The U.S. government is running up against its $16.4 trillion borrowing limit and is taking steps to avoid default. Reaching the limit Monday sets up another dispute between the White House and Congress over taxes and spending in the new year.
President Barack Obama returns from Hawaii Thursday to the increasingly familiar fiscal cliff deadline showdown in the nation's capital, with even a stopgap solution now in doubt.
Treasury Secretary Timothy Geithner said in a letter Wednesday to congressional leaders that the department will use accounting measures to save approximately $200 billion, which could keep the government from reaching the limit for about two months.
Back in July 2011, President Obama and Congress set the country on autopilot toward economic Armageddon to give themselves an incentive to reach a budget deal. It didn't work. As we stare over the fiscal cliff, let's take a quick look back at the path we took to get here.
The dealmakers who warn that a year-end plunge off the "fiscal cliff" would be disastrous don't seem to be rushing to stop it. Why aren't they panicking? Because those master procrastinators know that Washington deadlines are rarely firm, and they know precisely how they can finagle more time.
On Jan. 1, 2013, the United States will fall over off the fiscal cliff -- unless Congress and the president ink a deal to avert the crisis. If you think you know all about the forthcoming economic apocalypse -- or if you're just wondering what all the fuss is about -- check out our quiz and see.
Credit rating agency Moody's is threatening to downgrade U.S. debt if Washington doesn't get its act together soon -- which could (perhaps) increase the government's borrowing costs. That would be troublesome, but the really scary U.S. debt problem is China's economic slowdown.
The United States' ability to compete on the global stage has fallen for the fourth year running as confidence in the country's politicians continues to decline, an annual survey from the World Economic Forum revealed Wednesday.
The nonpartisan Congressional Budget Office is warning that if $607 billion in tax increases and spending cuts all hit as scheduled, the U.S. will likely go into recession in 2013. It's a "fiscal cliff" we don't have to jump off.
The U.S. is again closing in on its debt limit, and if a recent statement by Republican Speaker of the House John Boehner is any indication, another fight with the Obama administration over the issue is ahead. Here's a preview of what we might expect.
Between debt ceiling debates, the crisis in the eurozone, and battles over tax rates, money issues filled the front pages in 2011. Here are our picks for the seven stories that most directly affected your wallet.
Now that Hurricane Irene has passed, it's time to get back to discussing the country's biggest unnatural disaster: the economy. But here, too, Irene is making her impact felt, as economists and pundits across the country debate whether the hurricane will help or hurt America's bottom line.
Last week, Warren Buffett wrote an incredible opinion piece in The New York Times asking the government to raise taxes on the wealthiest Americans, himself included. "My friends and I have been coddled long enough by a billionaire-friendly Congress," he argued, and he's not alone in that view.
As the federal super committee looks for $1.5 trillion in cuts, it's clear that fixing the federal budget will mean tackling big items -- including Medicare, America's most popular social program and one of its most expensive.
It's true that the U.S. has racked up the largest debt of any developed country. But when you consider the debt in relation to the country's gross domestic product, it's only No. 7 on the list, according to Fortune. Here's what you need to know to make sense of all the numbers.
It you're feeling sick to your stomach, you're not alone. The stock-market roller coaster of the last couple of weeks -- culminating with Thursday's 500-point plunge on the Dow -- has been enough to make even the most stoic investors sweat. But here's how you can turn uncertainty into opportunity.
The debt-ceiling discussions may be over, but the fallout for states is just starting. Many states, still struggling to recover to pre-recession levels, have depended on federal money to make up their shortfalls. As the flow of money slows, which states will take the biggest hits?
As the debt-ceiling discussion winds down in Washington and everyone laments over the meaning and mutual downside of compromise, the economy is still in trouble. But we learned some lessons along the way. Here are some key points from the debacle.
As the debt ceiling insanity in Washington goes on, all that's certain is that the government is rapidly running low on cash to pay the bills. The amount left is now roughly $73.8 billion -- which sounds like a lot, until you realize that Apple's cash reserves are $2 billion more than that.
Everyone now knows the federal government is about to run up against its limit for borrowing money, but everyone also knows that governments can -- and do -- just print the stuff. Washington owns the Bureau of Engraving and Printing. Could the way to sidestep this looming crisis be just making more money?
