With President Joe Biden And House Speaker Kevin McCarthy can’t reach no consensus on debt ceiling crisisConcerns about a possible sovereign debt default have resurfaced.
At the Whole Mars Catalog tweeted that not paying the national debt was a bad idea, Tesla boss Elon Musk responded to the tweet with the words “More and more possible”.
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Musk’s comments appear to be in line with what the majority of market participants might expect after the fruitless talks between the two market leaders. Biden and McCarthy agreed to hold another meeting Friday.
speaking outside the White House on Tuesday afternoon, House Speaker Kevin McCarthy said there had been “no new movement”.
“Everyone repeated the positions they were in,” McCarthy said.
Biden has maintained that defaulting on payments is not an option. “There is still a lot to discuss, but basically I agree what Leader McConnell said at our meeting today: Default is not an option,” he tweeted.
What should also worry market participants is the fact that both sides have agreed that a short-term suspension or increase in credit limits is out of the question.
Caution: Meanwhile the Treasury Borrowing Advisory Committeean industry group that advises the government on debt management warned it was “deeply concerned by the lack of solutions”.
“This current standoff risks undermining the very foundation of the US Treasury market: the full confidence and creditworthiness of the US government,” the group wrote in the letter Treasury Secretary Janet Yellen.
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