U.S. could face ‘Liz Truss moment’ without action on debt mountain
1 month ago

U.S. could face ‘Liz Truss moment’ without action on debt mountain

Live Mint  

The U.S. could face a sharp rise in borrowing costs and turmoil in financial markets as soon as next year if government debt continues to pile up rapidly, according to insurance giant Swiss Re’s group chief economist. “I don’t exclude next year that the U.S. is going to have a Liz Truss moment for Treasurys" he said, referring to the British prime minister who resigned in 2022 after financial markets reacted negatively to the announcement of big tax cuts. Economists have long worried that mounting debts could push up interest rates and threaten the U.S. government’s ability to borrow large sums during a major crisis, as it did during the Covid-19 pandemic. Any boom in economic activity prompted via tax cuts and increased tariffs at the start of Trump’s presidency would be followed by a “fiscal bust" should some of the policies not be retracted, Haegeli said.

Financial Markets Debt Swiss Tax Cuts Government Debt Borrowing Costs Government Bonds Economic Output Haegeli  truss  action  tariffs  debt  moment  borrowing  haegeli  rise  economic  face  according  liz  financial  trumps  mountain  tax

History of this topic

Inflation, debt, default: Donald Trump’s second term poses massive economic challenges
1 month, 2 weeks ago

Inflation, debt, default: Donald Trump’s second term poses massive economic challenges

Live Mint  

As Donald Trump begins his second term, several key challenges lie ahead. The growing debt burden has already affected investor confidence, sending U.S. government bond yields higher as market participants worry about the long-term sustainability of U.S. fiscal policy. Previous debt ceiling standoffs have pushed the U.S. close to default, and there is concern that the political divide in Washington …

As per your politics, debt ceiling plan is good or a ‘disaster’
1 year, 6 months ago

As per your politics, debt ceiling plan is good or a ‘disaster’

Al Jazeera  

While some of the US Congress’s most conservative members are not happy with the deal, business groups gave it a thumbs-up. She called the debt ceiling agreement a “terrible policy” Sunday on CNN’s State of the Union programme. I told the president that directly, when he called me last week on Wednesday, that this is saying to poor people and …

US debt ceiling has catastrophic effects- 83 lakh job losses, world recession I EXPLAINED
1 year, 6 months ago

US debt ceiling has catastrophic effects- 83 lakh job losses, world recession I EXPLAINED

India TV News  

US Debt ceiling row: Amid the looming catastrophic recession, US President Joe Biden and House Speaker Kevin McCarthy are narrowing in on a two-year budget deal aiming to curb federal deficits in exchange for lifting the nation’s debt ceiling and staving off an economically devastating government default. White House estimates say a prolonged default could cause 8.3 million job losses …

US on the debt ledge, will it fall?
1 year, 7 months ago

US on the debt ledge, will it fall?

Firstpost  

June 1, the earliest date by which the US could default is just a little over a week away. Meanwhile, “extraordinary measures” have been adopted by the US Treasury Department to maintain cash flow till the “hard deadline”, but without an agreement in Congress to raise the limit Treasury Secretary Janet Yellen has warned that the US may not meet …

What it would mean for the global economy if the US defaults on its debt
1 year, 7 months ago

What it would mean for the global economy if the US defaults on its debt

Associated Press  

WASHINGTON — If the debt crisis roiling Washington were eventually to send the United States crashing into recession, America’s economy would hardly sink alone. Because the dollar’s dominance has made it the de facto global currency since World War II, it’s relatively easy for the United States to borrow and finance an ever-growing pile of government debt. “Even though we …

US debt-ceiling: Biden, McCarthy aim to break standoff as default crisis looms
1 year, 7 months ago

US debt-ceiling: Biden, McCarthy aim to break standoff as default crisis looms

Live Mint  

President Joe Biden and top Republicans and Democrats from Congress are set to sit down this week to try to resolve a three-month standoff over the $31.4 trillion US debt ceiling and avoid a crippling default before the end of May. Biden is due to meet on Tuesday at the White House with McCarthy for the first time since Feb. …

White House predicts economic fallout if US fails to make debt payments
1 year, 7 months ago

White House predicts economic fallout if US fails to make debt payments

Firstpost  

The White House issued a dire warning on Wednesday, predicting a future of falling equities and rising unemployment should the United States fail to make its debt payments. The US government’s failure to pay its financial obligations might result in eight million job losses this summer and a six per cent decline in GDP, according to the President’s Council of …

White House warns of recession as debt limit fight drags on
1 year, 7 months ago

White House warns of recession as debt limit fight drags on

India Today  

White House economists on Wednesday warned of “severe damage” to the US economy in the event of a debt default, warning that a prolonged default could cause 8.3 million job losses and the stock market to tumble 45%. The White House analysis warned that a protracted default could cost more than 8 million jobs in the third quarter of 2023, …

Treasury’s Yellen says U.S. could hit debt ceiling as soon as June 1
1 year, 7 months ago

Treasury’s Yellen says U.S. could hit debt ceiling as soon as June 1

The Hindu  

Treasury Secretary Janet Yellen notified Congress on Monday that the U.S. could default on its debt as early as June 1, if legislators do not raise or suspend the nation’s borrowing authority before then and avert what could potentially become a global financial crisis. CBO Director Phillip L. Swagel said because of less-than-expected tax receipts this filing season and a …

US could face debt-cap crisis this summer without deal, CBO warns
1 year, 10 months ago

US could face debt-cap crisis this summer without deal, CBO warns

Al Jazeera  

The United States Congressional Budget Office on Wednesday said the Treasury Department will exhaust its ability to pay all its bills sometime between July and September unless the $31.4 trillion cap on borrowing is raised or suspended. In a report issued alongside its annual budget outlook, the non-partisan CBO cautioned that a historic federal debt default could occur before July …

Views of U.S. economy improve but remain low; debt ceiling uncertainty looms — CBS News poll
1 year, 10 months ago

Views of U.S. economy improve but remain low; debt ceiling uncertainty looms — CBS News poll

CBS News  

Views of the nation's economy have ticked back up — though they remain a long way from good. In another sign of uncertainty as debt ceiling talks continue, Americans' views on the debt limit are tied to how likely they think an economic downturn is if it isn't raised. The debt ceiling Views on raising the debt ceiling start off …

Lots of sound and fury on US debt, but not a crisis — yet
1 year, 10 months ago

Lots of sound and fury on US debt, but not a crisis — yet

Associated Press  

WASHINGTON — For all the sound and fury about raising the nation’s debt limit, most economists say federal borrowing is not at a crisis point. The political jousting masks contrasting realities: Today’s $31.4 trillion national debt does not appear to be a weight on the U.S. economy, but the debt’s path in the decades to come might put at risk …

Amid fears of a crisis, the US begins the debt ceiling battle
1 year, 11 months ago

Amid fears of a crisis, the US begins the debt ceiling battle

Hindustan Times  

With the United States hitting its debt ceiling limit on Thursday, America has entered a period of a gruelling political battle over a debate on the issue, with the White House warning that Republican obstructionism risks push the country towards an economic “catastrophe” and Republicans placing the responsibility of an agreement on Democrats. As the US Government Accountability Office, the …

EXPLAINER: How ominous is the debt limit problem?
1 year, 11 months ago

EXPLAINER: How ominous is the debt limit problem?

Associated Press  

WASHINGTON — The U.S. government on Thursday ran up against its legal borrowing capacity of $31.381 trillion, and the Treasury Department began implementing “extraordinary measures” to avoid a default. Because the debt cap limits the issuance of government bonds — a way the U.S. borrows money — these workarounds shift money among accounts and should keep the government open through …

Explainer | A looming U.S. debt ceiling fight is starting to worry investors
1 year, 11 months ago

Explainer | A looming U.S. debt ceiling fight is starting to worry investors

The Hindu  

A debt ceiling fight is looming in the United States yet again, giving investors another worry for markets this year. The United States will likely hit its mandated $31.4 trillion borrowing limit on Thursday, forcing the Treasury to launch extraordinary cash management measures that can likely prevent a debt default until early June. In 2021, some equity weakness and anomalies …

Countdown in the offing for political fight over debt
1 year, 11 months ago

Countdown in the offing for political fight over debt

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Get our free Inside Washington email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Asked twice Wednesday if there was evidence that House Republicans can ensure that the …

Yellen tells Congress US expected to hit debt limit Thursday
1 year, 11 months ago

Yellen tells Congress US expected to hit debt limit Thursday

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit on Thursday and will then resort to “extraordinary measures” to avoid default. “We’ve got to change the way we are spending money.” McCarthy has floated the kind of budget-cap deal that was engineered in the last go around on the …

Yellen warns Congress that U.S. is expected to hit debt limit Thursday
1 year, 11 months ago

Yellen warns Congress that U.S. is expected to hit debt limit Thursday

LA Times  

Treasury Secretary Janet L. Yellen notified Congress on Friday that the U.S. is projected to reach its debt limit Thursday and will then resort to “extraordinary measures” to avoid default. “We’ve got to change the way we are spending money.” McCarthy has floated the kind of budget-cap deal that was engineered in the last go-around on the debt ceiling during …

Senate dodges US debt disaster, voting to extend borrowing
3 years, 2 months ago

Senate dodges US debt disaster, voting to extend borrowing

India TV News  

The Senate dodged a U.S. debt disaster Thursday night, voting to extend the government’s borrowing authority into December and temporarily avert an unprecedented federal default that experts warned would devastate the economy and harm millions of Americans. That debate will take place as lawmakers also work to fund the federal government for the new fiscal year and as they keep …

Drama over the debt ceiling is the last thing America’s economy needs
3 years, 5 months ago

Drama over the debt ceiling is the last thing America’s economy needs

CNN  

New York CNN Business — America’s road to economic recovery is littered with obstacles, beginning with soaring inflation and the rapidly spreading Covid-19 Delta variant. “I can’t imagine there will be a single Republican voting to raise the debt ceiling after what we’ve been experiencing,” the Senate minority leader said in an interview with Punchbowl News published Wednesday. “The timing …

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