Cap Spending And Raise Debt Ceiling For 2 Years
6.5% gain taking puts from the debt crisis and weak banking sector at open. ⚠️ Looking at puts under 412.3 and calls above 415.3 on Friday after the PCE news releases.
Ratings agency Fitch put the United States' "AAA" rating, its highest rank, on a negative watch in a precursor to a possible downgrade should lawmakers fail to raise the amount that the Treasury can borrow before it runs out of money, which could happen as soon as next week.
Fitch's move revived memories of 2011, when S&P downgraded the United States to AA-plus and set off a cascade of other downgrades as well as a stock market sell off near to 20% plunge within a couple of days.
Another sign that a deal may be near was a set of additional demands on McCarthy from the most conservative bloc of House Republicans, something GOP leadership had been expecting whenever the talks moved close to a compromise.
On Thursday, 35 of McCarthy’s most vocal critics in the House GOP released a letter urging the speaker to abandon the current talks and issue a new slate of much more polarizing demands.
The House Freedom Caucus members urged McCarthy to use the threat of an unprecedented debt default as leverage to force the White House to agree to a short-term debt ceiling extension through June, and to use the additional time to secure more concessions from the White House, including a border and immigration bill, and to mount a campaign to discredit Treasury Secretary Janet Yellen.
Republicans and the White House are narrowing their differences over raising the US debt limit but still haven’t reached an agreement to avert an approaching default. GOP Representative Patrick McHenry said the list of issues dividing the two camps had grown shorter.
Should a deal be reached soon, Tuesday is emerging as the likely day for a House vote. The Senate would then need to act quickly to send it to Biden’s desk before June 1, the date by which Treasury Secretary Janet Yellen has said her department could run out of cash.
Meanwhile, the economic impact of a debt ceiling deal will have ripple effects for presidential candidates in 2024.
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With 95% of S&P 500 companies having reported, Q1 2023 earnings season closes with a final growth rate of -2.2%, officially indicating an earnings recession....
PCE numbers.....6.9% for Food increase YoY...that is a joke.....try 15-20% YoY......LOL.
US can solve inflation tomorrow stop spending money on Ukraine and use it for are debt
Well where the pumpers at?