'Market angst' brewed as debt ceiling debate raged in Congress

Default would wipe out $15trn in household wealth

Markets are “starting to notice” that the US is getting closer to defaulting on its debt, according to investment professionals, with the Senate finally passing a short-term fix to delay the debate.

After weeks of Republicans refusing to vote for a bill that would prevent a default, an agreement was finally reached on 7 October, due in part to threats by Democrats to push the bill through by making changes to Senate parliamentary procedure. The Senate eventually voted on an agreement to raise the limit by $480bn, which will delay the debate until sometime in December. The House of Representatives is due to vote on the Senate's bill on Tuesday, where it is expected to pass and be signed by Biden next week. However, it seems likely the argument will be reignited in the next couple ...