Debt Ceiling time bomb is ticking

The debt ceiling is the legal limit on the amount of money the U.S. government can borrow to pay its debts, including the debt held by the public and the debt the government owes itself.

On Jan. 19, the United States hit its debt ceiling which is set at $31.4 trillion. To prevent a default the Treasury takes charge of paying bills until congress can come to an agreement. Yellen told lawmakers that she believes the efforts from the treasury will allow the government to pay its obligations until early June.