The debt ceiling is back on the table for 2025. Here's what happens next.
Published On Dec 22, 2024, 4:00 PM
The U.S. debt ceiling issue is resurfacing as the temporary suspension ends on January 1, 2025. The Treasury will implement "extraordinary measures" to delay default for a few months. However, uncertainty remains on when these measures will run out, with some analyses suggesting mid-June 2025 as a critical period. The upcoming political landscape is complex, especially with the Republican control of Congress and competing interests within the party regarding spending cuts tied to any debt ceiling increase.
Stock Forecasts
SH
Negative
Given the historical volatility surrounding the debt ceiling negotiations and the potential for bipartisan conflicts, especially with negotiations tied to spending cuts which could hinder timely resolutions, investor sentiment may turn negative as the deadline approaches.
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