Debt Ceiling Update: Stronger Process, But Parties Still Far Apart

Key Developments

• The Treasury has confirmed that the X-date was likely in early June and potentially as early as 1 June.
• The White House has upgraded its negotiating team to include two senior aides.
• President Biden has left for Asia but shortened his trip to Sunday to focus on the negotiations.
• House Speaker McCarthy sees a stronger negotiating process but a short timeframe to get a deal while the parties are still ‘far apart’.
• House Democrats have launched a discharge petition, a manoeuvre designed to allow a vote on a clean debt ceiling increase. However, they are unlikely to get the votes required.

Dominique Dwor-Frecaut is a macro strategist based in Southern California. She has worked on EM and DMs at hedge funds, on the sell side, the NY Fed, the IMF, and the World Bank. She joined Macro Hive soon after its inception.

Mustafa Chowdhury comes with over 30 years of experience in the industry. He has held senior positions at several leading firms, including Voya Investments (formerly ING US), Deutsche Bank, Bear Stearns and Freddie Mac. He has a wealth of knowledge and expertise in trading, research, and portfolio management of G-10 Macro Rates, MBS and Derivatives.

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