A Polarized US Hurtles Toward a Fiscal Cliff

House Speaker Kevin McCarthy swears in lawmakers at the US Capitol on Jan. 7.

Photographer: Al Drago/Bloomberg

The risk has never been higher that the world’s largest economy could default on its national debt for the first time.

The US government has reached its legal borrowing limit — $31.381 trillion — and far-right Republicans in the House are demanding concessions from the White House, such as spending cuts, in exchange for lifting the ceiling, as they have previously over the years.