Trump Willing to Increase the National Debt Ceiling

Trump revealed his willingness to raise the national debt ceiling. "All I want to see is no default because nobody knows what would happen if there is a default," Trump said during the speech on Tuesday. If default happens, U.S. government will lose credit, which will make it harder for them to borrow, accordingly the currency value will drop and will disrupt the market.

Democrats agree to increase the limits to pay the interests and to pay other national expenses. However, Republicans aren't so open to take in. They concern for the problems that will come due to higher national deficit. Currently, not enough votes are collected among Republicans. Cuts are demanded along the increase of debt-limit by some Republicans which may still be unacceptable to other Republicans.

Avoiding default seems to be more urgent in this case. Like some Republicans saying however, the cut should occur with the leverage of debt-ceiling. The national debt should remain in the manageable level to avoid bringing other economical challenges.

Reference:

Rubin, R. (2025, January 8). Debt-Ceiling Fight Has New X Factor: Trump. Wall Street Journal. https://www.wsj.com/politics/policy/us-congress-debt-limit-trump-2c45575d?tpl=cb