_{US NEWS}

U.S. Could Default After August 15 Without Action on Debt Ceiling, Bipartisan Policy Center Warns

The U.S. government could run out of money between August 15 and October 3, 2025, if Congress does not raise the debt ceiling, according to a new projection from the Bipartisan Policy Center. This looming “X date” marks the point when the government can no longer meet its financial obligations, potentially triggering a financial crisis or recession.

Key points:

• The current debt ceiling is $36.1 trillion, already reached in January.

• Extraordinary measures to delay default are nearly exhausted.

• The Senate GOP’s new bill proposes raising the ceiling by $5 trillion, compared to the House’s $4 trillion version.

• President Trump is pressuring lawmakers to pass the bill quickly, even telling them to cancel vacations.

• Treasury Secretary Scott Bessent warned that default would "wreak havoc" on the financial system and noted that court decisions affecting tariff revenues could also impact the timeline.

• The government spends $16.9 billion per day, and tariff revenue ($22 billion last month) won’t significantly shift the outlook.

• Critics, including Sen. Rand Paul, remain opposed to raising the ceiling without major conditions, reflecting deep partisan divides. Read More.

_{ECONOMIC NEWS}

Dollar Hits 3-Year Low as Trump Eyes Early Replacement for Fed Chair Powell

The U.S. dollar dropped to its lowest level in three years after reports emerged that President Donald Trump plans to announce a successor to Federal Reserve Chair Jerome Powell earlier than expected. The Wall Street Journal’s Dollar Index fell to 97.01 on Thursday before slightly rebounding. Trump, who nominated Powell in 2017, has since harshly criticized him for not cutting interest rates and is reportedly considering candidates like Kevin Warsh, Kevin Hassett, Scott Bessent, David Malpass, and Christopher Waller.

Though Powell’s term runs through May 2026, Trump may announce a new nominee by September or October, potentially giving the successor early influence over monetary policy. However, official decisions remain in the hands of the broader Fed board. The uncertainty around Fed leadership and ongoing rate policy has rattled markets and added to the dollar’s decline. Read Now.