The United States is now like an egg on the end of the horn following Treasury Secretary Janet Yellen's warning that the country may experience a 'default' if the debt ceiling fails to be raised before June 1.
This is because, Republicans and Democrats are still far from reaching a consensus in the matter.
The debt ceiling is a limit on the amount of money the US government can borrow to pay for services such as social security, health and the military.
If it fails to be raised, the US may not have the money to fund the service.
In this context, Congress is responsible for setting the debt limit, which currently stands at $31.4 trillion. It has been raised 78 times since 1960 under both Democratic and Republican presidents.
On April 26, Republicans passed a bill in the House to raise the debt ceiling by $1.5 trillion but demand $4.8 trillion in government spending cuts.
However, since it would restrict the interests of the Democrats, the party led by President Joe Biden refused to negotiate spending cuts.
With America at risk of default, it puts pressure on Democrats to agree to the proposal.
As a result, President Biden called the top four leaders of Congress to the White House next week to discuss such issues.
If the United States defaults, it could cause a 'catastrophe' on the US economy thus affecting global financial stability, according to Janet Yellen.
It could also cause investors to lose faith in the US dollar, quickly weakening the economy, where job cuts will occur and the federal government will not be able to continue all its services.
