US economic strength rests on trust in the dollar. A debt-ceiling breach would destroy that, Yellen said, with big implications for every country.
Senate Republicans are on the verge of blocking a debt limit hike. The stakes are incredibly high, but lawmakers are at an impasse.
Sen. Elizabeth Warren tells Insider that it "makes no sense" while Rep. Bill Foster says it's time to abandon this "silly rule that we make up."
Nobody should assume the Federal Reserve can help if Congress fails to lift the debt limit ahead of a mid-October deadline, Powell said.
If the government defaults on its debt, the resulting downturn would be similar to the 2008 financial crisis, Mark Zandi of Moody's said.
Congress has just weeks to avoid a "catastrophic default" on its debt, JPMorgan's David Kelly said. Lawmakers are squabbling over an agreement.
Since Biden took office, his economic agenda has been criticized by Larry Summers, who served under both Clinton and Obama. McConnell appreciates it.
If yields rise too much too quickly, the interest the US pays on its debt could force Congress to "question sustainability," UBS economists said.
The Fed has said it will hold interest rates near zero through 2023. The low rates ensure today's debt levels pose little threat, Powell said.
The CBO's report doesn't account for Democrats' $1.9 trillion stimulus, and could give Republicans more firepower in their fight against the bill.
The Treasury Department said Wednesday the pandemic continues to cloud its future borrowing needs. Debt issuance ramped up in 2020 and will continue to do so as expenses mount, the department said. Still, the Treasury’s cash balance needs to be reined in ahead of a key debt-ceiling deadline. Visit the […]
Stock valuations were already outpacing the economy in 2019, and the coronavirus pandemic only exacerbated the issue. That poses a risk to the market’s climb in 2021, Seema Shah, chief strategist at Principal Global Investors, said in a blog post. Fundamentals and valuations continue to play second fiddle to the […]
The US federal budget deficit soared to a record $US3.1 trillion in the fiscal year that ended in September, according to Treasury Department data published Friday. The monthly budget report reflects the historic fiscal spending used to pad the US against the coronavirus pandemic, as well as the weakened tax […]
Major economies may be well on their way to recovery, but outsized government borrowing runs the risk of fuelling a financial crisis, World Bank Chief Economist Carmen Reinhart said Thursday. The path of governments’ fundraising and bond-buying is “not sustainable” and could spark debt crises should they continue, the economist […]
The Congressional Budget Office’s latest budget outlook sees federal debt becoming nearly twice the size of the US economy in 2050. Spending on economic relief throughout the coronavirus pandemic drove government debt to its highest since World War II. Higher borrowing costs and rising interest rates will drive debt to […]
The UK’s government debt has hit £2 trillion ($US2.6 trillion) for the first time in history after policymakers doled out “extraordinary” fiscal support during the pandemic this year. Britain’s debt has exceeded 100% of economic output for the first time since the 1960s, the ONS said. The news comes about […]
The government will amass more than $184 billion in debt as it tries to combat the economic impacts of the coronavirus crisis. Providing its budget update on Thursday, the Treasury claimed support measures had saved 700,000 jobs but that it had been unable to stop almost 900,000 layoffs. Assuming borders […]