As the deadline to raise the debt ceiling approaches, analysts warn that if the United States fails to reach an agreement, it could result in another U.S. recession. With the Republicans proposing a new plan that would reduce federal spending and President Biden firmly against any negotiations, there seems to be no resolution in sight. As a result, some on Wall Street have started to consider the possibility of a default, and the increasing uncertainty is leading investors to become "on edge." This panic is in contrast to the 2011 fight between the Conservatives and President Obama, which also involved using the debt ceiling to seek spending cuts; it cost taxpayers over $1 billion and saw a downgrade in U.S. credit, precipitating a decline in the stock market. Fitch Ratings, a leading credit rating agency, has warned that another standoff could further erode confidence in Washington and its ability to pay, ultimately affecting the sovereign credit profile. If the debt ceiling remains unaddressed, it may cause even more problems and the United States risks facing economic and financial instability.