The debt ceiling is the maximum amount the U.S. government can spend on its existing obligations, including Social Security and military salaries.
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What it is not
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It is not a vote to spend more money. Without a higher ceiling, the government would have to default on bills already incurred that it has already committed to pay.
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The latest
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Congress is expected to hit the ceiling Thursday, Yellen said in her letter on Friday. Despite the deadline, the Treasury Department can take "extraordinary measures" to keep paying its debt for several more months, she said.
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Consequences
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If the federal government defaults on payments, ramifications could include a stock market crash, a recession and a rise in unemployment,experts say.