The deadline to raise the U.S. debt ceiling is approaching faster than expected, with the political uncertainty surrounding when the government’s borrowing limit may be lifted already beginning to worry markets, according to Goldman Sachs Group.
Goldman is expecting April tax receipts to be “weak as a result of reduced capital gains-related taxes,” with preliminary data as of April 14 suggesting increased odds of Congress needing to address the debt limit by early June, according to the note. “Speaker McCarthy is holding the full faith and credit of the United States hostage, threatening our economy and hardworking Americans’ retirement,” White House deputy press secretary Andrew Bates said Monday.
“It’s all political theater,” Skordeles said in an interview Tuesday. “You’re eroding market confidence.” Truist’s Skordeles said he’ll be watching for signs of potentially weakened demand for Treasurys in offerings over the summer should the debt-ceiling showdown drag on close to the deadline. Stocks have rallied so far this year, with the S&P 500 up slightly more than 8% based on Tuesday afternoon trading. The stock market’s so-called fear gauge, the Cboe Volatility Index VIX , was meanwhile trading around 16.7 on Tuesday afternoon, below its long-run average of about 20.
You think?
Shut it down.
The US will never cut spending and increase its debt as possible as fast until everyone throws away the dollars. - the preordained destiny.
It’s about time the US cut spending and reduced debt inflating the debt bubble is just adding fuel to the fire.
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