- There is a good chance that the debt ceiling will not be addressed and a continuing resolution not enacted by October 1, 2021.
- Some are warning that failure to address the debt ceiling could cause the United States to default on its obligations and that could cause a financial market collapse.
- It is highly unlikely that markets would collapse because of any temporary delay in paying treasury debt service.
- The prospects of failure to address the debt ceiling would tend to make the early Federal Reserve tightening less likely.
For further details see:
REML And The Debt Ceiling Showdown