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General TradingD
Debt Ceiling
The debt ceiling is a legislative limit set by the US Congress on the total amount of national debt that the government can accumulate. When the ceiling is reached, the Treasury cannot issue more debt, potentially leading to a government shutdown or default, making it a significant market-moving event.
Example
“Markets became volatile as Congress debated raising the debt ceiling, with fears of a US government default causing a spike in Treasury yields.”