Source: https://mochatrade.com/learn/glossary/debt-ceiling

# Debt ceiling
URL: https://mochatrade.com/learn/glossary/debt-ceiling
Last modified: 2026-10-17

The debt ceiling is the cap Congress sets on total US government borrowing. The Treasury [borrows the gap between spending and taxes](https://mochatrade.com/learn/us-market-structure/us-stock-market-explained), 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](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks).

## Related terms

- US Treasury: https://mochatrade.com/learn/glossary/us-treasury
- Federal Reserve: https://mochatrade.com/learn/glossary/federal-reserve
- Government shutdown: https://mochatrade.com/learn/glossary/government-shutdown
- Quantitative easing: https://mochatrade.com/learn/glossary/quantitative-easing
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- FINRA: https://mochatrade.com/learn/glossary/finra