25 Jul 2013
Flash: US debt ceiling debate back on radar – Deutsche Bank
FXstreet.com (New York) - Yesterday investors saw the return of the US debt ceiling debate, which seemed to drag down equities slightly, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
“House Speaker John Boehner warned that Republicans are not going to raise the debt ceiling without real cuts in spending.”
“President Obama and Senate leaders responded by saying that they wouldn’t accept anything short of a clean debt-limit increase. Yesterday’s comments look like they were the opening shots of a debt ceiling debate that has been on the backburner over the past several months.”
However, “the issue looks set to garner more attention over the remaining weeks of summer and into the autumn. The general consensus appears to be that the US will need an increase in the debt limit sometime between September and November after the breathing room from previous emergency measures is exhausted.”
Key quotes
“House Speaker John Boehner warned that Republicans are not going to raise the debt ceiling without real cuts in spending.”
“President Obama and Senate leaders responded by saying that they wouldn’t accept anything short of a clean debt-limit increase. Yesterday’s comments look like they were the opening shots of a debt ceiling debate that has been on the backburner over the past several months.”
However, “the issue looks set to garner more attention over the remaining weeks of summer and into the autumn. The general consensus appears to be that the US will need an increase in the debt limit sometime between September and November after the breathing room from previous emergency measures is exhausted.”