Equities | Fiscal Policy | US
Congress Plays Chicken as the Debt Ceiling Looms
- By John Tierney
- 3 min read
Congress faces two pressing deadlines in coming weeks. First is passing a continuing budget resolution to keep the government open after 30 September. And second is to raise or suspend the debt ceiling before the Treasury runs out of money sometime in October. If they cannot, the US risks defaulting on its debt obligations.
Neither prospect seems to bother markets. An overwhelming consensus agrees Democrats control Congress and the White House, and they will act to avert the crisis. My colleague Dominique Dwor-Frecaut makes this case in her weekly discussion.
But a more fraught (if still low-probability) scenario is in play, too.
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