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2) Held up by disputes over how to reduce deficits, Washington doesn't raise the debt ceiling in time.
"We're still optimistic that there is a path to lift the debt ceiling in time," she told reporters.
Here are the likely scenarios I see: 1) Held up by disputes over how to reduce deficits, Washington doesn't raise the debt ceiling in time.
The longer the shutdown goes on the greater the odds that a deal can't be reached to lift the debt ceiling in time, which would be truly catastrophic.
Macroeconomic Advisers predicts that failing to raise the debt ceiling in time — even if the delay is only one month — will very likely result in a new recession.
The markets are calm, betting that Congress will find a way to raise the debt ceiling in time to avert default.
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Thousands of tiny blue lights, strung in arcs on the ceiling, pulsated rapidly in time with the steel drums.
In a statement after the White House session, Mr. McConnell indicated that he and his leadership counterparts were intent on devising a fallback measure to assure the borrowing ceiling was raised in time.
"I think the market still has confidence that the debt ceiling will be raised in time," said Terry Belton, head of fixed-income strategy at JPMorgan Chase.
The Organisation for Economic Co-operation and Development OECDD) and the International Monetary Fund (IMF) have warned that the political deadlock threatens the stability of the global economy, The biggest fear among many is that the impasse may see the US debt ceiling not being raised in time, resulting in a default.
Both Moody's and Standard & Poor's have put the ratings on review for a possible downgrade to account for a growing risk that the country's debt ceiling is not raised in time to avoid a default next month.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com