There is a rising risk of a short-lived default by the United States if there is no increase in the statutory debt limit in coming weeks, Moody's Investors Service said.
Earlier, President-elect Donald Trump said he wants the U.S. Congress to extend the nation's debt ceiling, adding that he did not want to see the federal government default on its debt, which currently tops $36 trillion.
U.S. Treasury expects to hit the statutory debt ceiling between January 14 and January 23.
The U.S. last dealt with a debt ceiling crisis in early 2023, when it hit its $31.4 trillion debt limit. After months of contentious negotiations between the GOP-led House and the Democrats who controlled the Senate and White House, Congress passed the bipartisan Fiscal Responsibility Act in June 2023, suspending the debt limit through January 1, 2025 along with some spending caps and cuts.