Before the Treasury uses all exceptional cash management options to avert a debt default the US Congress will probably agree on a new debt ceiling, according to a report published on Thursday by Moody s Investors Service.
In the midst of a political impasse between President Joe Biden s Democrats and the Republican-controlled House of Representatives that may cause a fiscal catastrophe in the coming months, the US government reached its $31.4 trillion borrowing limit on Thursday.
According to Moody s, a deal would likely be achieved “extremely slowly or incrementally,” which might increase market volatility.
