US: Debt ceiling approaching fast - ING

James Knightley, Chief International Economist at ING suggests that as lawmakers return from summer recess, the first issue on the agenda will be to raise the debt ceiling and, if they fail, it will hit markets hard.

Key Quotes

“Deal, shutdown or default

President Trump is surely getting used to bad headlines following his Administration’s failure to repeal and replace Obamacare together with the impasse over tax reforms. However, his situation and the media coverage may soon get even worse.

Lawmakers return to Washington on 5 September and could have as little as 12 working days to pass legislation to raise the debt ceiling. Otherwise, the US faces the prospect of a government shutdown of non-essential services and potentially even a debt default.”