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https://www.wsj.com/articles/debt-ceiling-standoff-could-start-a-recession-but-default-would-be-worse-d536c3f3

Debt-Ceiling Standoff Could Start a Recession, but Default Would Be Worse

Economists assess the damage that could occur in three scenarios ranging from a last-minute deal to lengthy impasse

By Sarah Chaney Cambon

May 20, 2023 5:30 am ET

As Democrats and Republicans debate raising the debt ceiling, they both agree that a default would be disastrous for the economy. But how? WSJ explains why U.S. debt has become the center of the economy. Photo Illustration: Madeline Marshall

Prolonged debt-ceiling squabbling could push the U.S. economy into recession, while a government default on its obligations might touch off a severe financial crisis.

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