President of the Federal Reserve Bank of New York John Williams warned that failure to increase the U.S. debt ceiling could lead to an “extreme” reaction (FT) in markets. Senate Republicans rejected a proposal yesterday to extend government funding through December and lift the debt ceiling, risking a partial federal-government shutdown on Friday. Democrats could now decouple measures (WSJ) to fund the government and raise the debt ceiling.
 
During the Donald Trump administration, there was bipartisan support for suspending the debt ceiling on three occasions, but Republicans have now blocked the measure (NPR) over objections to a proposed $3.5 trillion spending package. Without raising the debt ceiling, the United States could default on its debt as soon as mid-October, according to the Bipartisan Policy Center. 

More than ten Chinese provinces are rationing energy (Reuters). High coal prices, rising electricity demand, and efforts by some local governments to meet Beijing’s year-end emissions-reductions targets appear to be contributing (NYT) to power outages.
 
North Korea: North Korea fired a short-range missile (Yonhap) into the sea off its east coast, South Korea’s military said. Three days ago, Pyongyang floated the possibility of an inter-Korean summit.

A previous inquiry by the International Criminal Court (ICC) was deferred in April 2020. The court’s new prosecutor, Karim A.A. Khan, said he would focus on alleged crimes against humanity (Guardian) committed by the Taliban and self-declared Islamic State and deprioritize alleged crimes committed by the United States and Afghan security forces.
 
Pakistan: Pakistan’s ambassador to Afghanistan said the countries held talks (Reuters) on the possibility of the Taliban-led government joining an infrastructure project that is part of China’s Belt and Road Initiative.
 
For Foreign Affairs, Alexander Cooley discusses how Central Asia is adapting to a Taliban-led Afghanistan.

A recent spate of high inflation in Yemen prompted hundreds of people to protest (Reuters) in Taiz, which is controlled by the internationally recognized government.
 
Iran: The country’s top nuclear official is in Moscow today (TASS) for talks with the director of Russia’s state nuclear energy firm.

The government said it aims to limit carbon dioxide emissions (AP) to no more than 510 million metric tons by 2025 and 420 million tons by 2030, a much lower ceiling than the goal announced in 2016.
 
Nigeria: A top security official said dozens of people were killed (Al Jazeera) after gunmen staged multiple attacks in the country’s northern Kaduna and Sokota States.

Athens will buy three French warships (AFP) in a deal that French President Emmanuel Macron said was a step toward European defense autonomy.
 
CFR’s Charles A. Kupchan unpacks France’s reaction to the recent defense deal among the United States, Australia, and the United Kingdom.
 
Turkey: The official Twitter account for the U.S. Senate Committee on Foreign Relations tweeted that Washington would impose new sanctions (Bloomberg) on Turkey if Ankara goes ahead with plans to buy Russian missile defense systems.

Prime Minister Ariel Henry published a decree (AFP) announcing the measure and suspending the country’s electoral commission.
 
This Backgrounder looks at Haiti’s political crisis.
 
Colombia: Five people in the country’s southwest were shot dead (BBC) and six were injured in an attack that the army blamed on a breakaway rebel group.