The Debt Ceiling
The debt ceiling in the US is a legislative limit on the amount of national debt that can be incurred by the U.S. Treasury.
President Biden and House Speaker Kevin McCarthy are set to hold a direct meeting on Monday following a weekend of intermittent negotiations regarding the nation's debt ceiling. This meeting takes place just days before the government faces a critical "hard deadline" where it risks running out of funds to meet its financial obligations.
The possibility of a government default is unprecedented and would have devastating consequences for the nation's economy. Yellen and economic experts have expressed concerns, highlighting the potential for the situation to become "catastrophic."
In the past, raising the debt ceiling used to be a routine act carried out by Congress, enabling the Treasury Department to continue borrowing funds to cover the nation's already incurred bills.
However, in recent times, the vote to raise the debt ceiling has become a point of political leverage, with lawmakers using it as a must-pass bill to push forward other priorities.
House Republicans, who hold the majority this Congress, are currently refusing to raise the debt limit unless President Biden and the Democrats agree to implement federal spending cuts and impose restrictions on future spending.
In my opinion, we will see a suspension of the debt ceiling to allow for negotiations to form and be completed. As a result, I have a short-term bullish outlook, followed by an anticipated drop to $392 after the announcement, whatever it may be.
Looking forward to read your opinion about it!
President Biden and House Speaker Kevin McCarthy are set to hold a direct meeting on Monday following a weekend of intermittent negotiations regarding the nation's debt ceiling. This meeting takes place just days before the government faces a critical "hard deadline" where it risks running out of funds to meet its financial obligations.
The possibility of a government default is unprecedented and would have devastating consequences for the nation's economy. Yellen and economic experts have expressed concerns, highlighting the potential for the situation to become "catastrophic."
In the past, raising the debt ceiling used to be a routine act carried out by Congress, enabling the Treasury Department to continue borrowing funds to cover the nation's already incurred bills.
However, in recent times, the vote to raise the debt ceiling has become a point of political leverage, with lawmakers using it as a must-pass bill to push forward other priorities.
House Republicans, who hold the majority this Congress, are currently refusing to raise the debt limit unless President Biden and the Democrats agree to implement federal spending cuts and impose restrictions on future spending.
In my opinion, we will see a suspension of the debt ceiling to allow for negotiations to form and be completed. As a result, I have a short-term bullish outlook, followed by an anticipated drop to $392 after the announcement, whatever it may be.
Looking forward to read your opinion about it!
BUYSELL indicators tradingindicators.store/
TRADING COURSE bit.ly/tradex
Private Signals patreon.com/PremiumOptionsSignals
RESULTS bit.ly/topgx
1%/DAY: bit.ly/3F56VTW
BYBIT partner.bybit.com/b/37880
TRADING COURSE bit.ly/tradex
Private Signals patreon.com/PremiumOptionsSignals
RESULTS bit.ly/topgx
1%/DAY: bit.ly/3F56VTW
BYBIT partner.bybit.com/b/37880
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.