The Federal Reserve won’t sit idle if Congress fails to lift the debt ceiling and the government is unable to pay all its bills, economists said. An emergency plan devised years ago is the likely blueprint.
The Federal Reserve won’t sit idle if Congress fails to lift the debt ceiling and the government is unable to pay all its bills, economists said.In order to understand what the central bank might do, Fed watchers are dusting off their copies of the minutes of a Fed meeting in October 2013, the last wide-ranging discussion of the topic among Fed officials that is publicly available.
What’s puzzling to everyone is that this is a self-inflicted danger. Congress could quickly resolve the issue and raise or suspend the debt limit. Government officials are loath to even mention the plan exists for fear this could increase the risk of politicians causing a default, said Michael Gregory, deputy chief economist at BMO Capital Markets.
“The longer we would go beyond that drop-dead date, the more the stress would build and the more you’d risk seeing increasing pressures in various markets,” Daco said. The idea are not the clever ones, like minting a trillion dollar coin, that have captivated social media.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Effort to raise debt limit resets after Senate GOP blocks weeks from defaultHouse Democrats are continuing efforts to raise the debt ceiling in order to avoid the U.S. from defaulting on the national debt.
Les mer »
After blocking debt ceiling push, McConnell blames DemocratsFormer Democratic senator Al Franken discusses the current fight on Capitol Hill over the debt limit and the the state of the Democratic party still divided over Pres. Biden's agenda.
Les mer »
Factbox: How could America's debt ceiling showdown play out?The U.S. Congress is locked in a standoff that risks triggering a financial and economic meltdown if lawmakers don't raise a limit on government borrowing before Oct. 18, the day the U.S. Treasury could run out of cash for paying government bills.
Les mer »
Big bank bosses and the AARP join Biden's push to raise the debt ceiling with 12 days before deadlinePresident Joe Biden will on Wednesday escalate his call for Congress to address the debt limit in a meeting with Wall Street's top CEOs.
Les mer »
Senate GOP leader McConnell may offer short-term debt ceiling extension following pressure from BidenPresident Joe Biden and Democratic leaders in Congress amped up pressure on Republicans to act on the debt limit.
Les mer »
Pentagon Warns Failing To Raise Debt Ceiling Could Harm National SecurityBiden has spent weeks warning about dire economic consequences if Congress fails to approve more federal borrowing before the government runs out of money on Oct. 18.
Les mer »