With the Republicans holding a majority in the US House of representatives, which includes a vocal "MAGA squad" seeking to burn everything down in the lead up to the 2023 presidential elections, there is an increasing likelihood of a debt ceiling crisis over the coming weeks.
When? Janet Yellen has advised the debt ceiling will be hit on or around June 1.
What may happen? The most comparable scenario is the 2011 debt ceiling crisis, where the US economy was in a similar deflationary regime (falling growth and falling inflation), with the EU going through a crisis at the time (similar to US regional banking crisis?) On / around July 29, 2011 the crisis began, with Obama and the Republicans unable to resolve their differences. The crisis was not resolved until August 15, 2011. So what happened over this timeframe: