Examining potential outcomes: How will the US debt limit standoff conclude?

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Written By Jennifer Joslyn

🇺🇸 Examining potential outcomes: How will the US debt limit standoff conclude?

The US is facing a looming debt limit deadline, and both President Biden and House Speaker McCarthy are unwilling to give ground ahead of talks scheduled yesterday. While there are many possible scenarios, it is unclear how the standoff will end. Biden aims to raise the borrowing limit to pay bills and prevent default, while McCarthy and other GOP lawmakers are seeking spending cuts before agreeing to raise the limit. A short-term extension until the federal budget is passed may be a possible solution, but there is also the risk of a market selloff or potential constitutional arguments.

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Jennifer Joslyn
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