GO
Loading...

CNBC Explains: The debt ceiling

With the world watching in disbelief, the U.S. is just hours away from a deadline to raise the debt ceiling as the partial government shutdown begins Day 16.

Financial markets are waiting to see if an 11th hour deal lead by the Senate can be struck to avert default.

( Read more:Buffett: Debt limit is 'political weapon of mass destruction')


The U.S. Capitol Building
Getty Images
The U.S. Capitol Building

Fifty-one percent of Americans believe raising the debt limit by Thursday is "absolutely essential to avoid economic crisis," according to a new Pew Research Center poll even as other polls show most Americans do not even understand how the debt ceiling works.

In this CNBC Explains, CNBC's Economic Reporter Steve Liesman explains the debt ceiling.

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Latest Special Reports

  • Financial advisors stress that now is the time for investors to get serious about year-end financial planning checkup.

  • File photo: Participants at a hacking conference in Germany

    A series of high profile cyber attacks has created huge economic opportunity as businesses look to fend off future attacks.

  • Is an active twist on passive investing the right portfolio move? An inside look at the rise of ETF strategists.

Central Banking Explained

Corporate Accounting Explained