Debt ceiling

The debt ceiling is the cap Congress sets on total US government borrowing. The Treasury borrows the gap between spending and taxes, so it hits the cap on its own, and if Congress does not raise it the Treasury eventually cannot pay everything, including interest on its own bonds.

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In MochaLearnSee how the Fed moves US markets in MochaLearn
  • US TreasuryThe US Treasury is the government's borrower and the oldest name on the US market map: it issues bonds to cover the…
  • Federal ReserveThe Federal Reserve is the US central bank, built in 1913 after the 1907 bank runs were stopped by one banker. It sets…
  • Government shutdownA US government shutdown happens when Congress has not passed spending by the fiscal year start on 1 October, so…
  • Quantitative easingQuantitative easing is the Fed buying Treasuries and mortgage bonds with new reserves to push long-term yields down…
  • Bid-ask spreadThe bid-ask spread is the gap between the best price to sell (bid) and the best price to buy (ask). Buy at the ask…
  • FINRAFINRA is the Financial Industry Regulatory Authority, US brokers policing themselves under the SEC. It writes broker…

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