The deal reached between President Joe Biden and House Speaker Kevin McCarthy over the weekend has provided confidence that the resolution of the US debt ceiling issue is near and that the default of the world’s largest economy will be averted.
Yet, there still is a significant hurdle that needs to be overcome, as members of the Republican party are vowing battle against the agreement in both chambers this week. Although McCarthy believes that the majority of his party members will, in the end, accept the deal, the possibility that the agreement will be voted down is not remote. This would leave only days to avert the US defaulting on its debt, which, as things stand, could take place on 5 June. US debt ceiling crisis shakes bond market In the event of a default, financial markets would react strongly, but the severity of...
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