As predicted, the U.S. federal government reached its borrowing limit on Monday, cracking a $14 trillion cap on debt. Treasury chief Tim Geithner formally notified Congress, adding that he will suspend government-employee pension contributions. No major economic consequences are expected just yet—the next big challenge will be to avoid a government default on Aug. 2, when the Treasury will be forced to cut $125 billion in monthly spending. While Republicans want budget cuts in exchange for raising the limit, Democrats want it raised immediately, and Vice President Joe Biden will have to play moderator between the two battling parties.
TIME’S UP Charles Dharapak / AP Photo