http://www.mercurynews.com/wp-content/uploads/2017/01/632233264.jpg?w=620

With Trump Expanding the Debt Ceiling, How Will the Markets React?

September 7, 2017
112 Shares 2,960 Views

After months of anti-spending rhetoric and nasty confrontations with the Democrats, President Trump took another huge u-turn on Thursday after “meeting with Democratic Congressional leaders on Thursday morning.”

Reuters News reports that “President Trump embraced the idea on Thursday of ending the need for periodic raises of the ceiling on U.S. debt by Congress, again siding with Democrats a day after stunning fellow Republicans by striking a deal with the opposition party on the debt limit and federal spending.”

reuters.com

This marks a major shift for the President, who until now has shown little desire for any bi-partisan solutions on major issues such as healthcare or deregulation.

“For many years, people have been talking about getting rid of debt ceiling altogether, and there are a lot of good reasons to do that,” Trump told reporters. “It complicates things, it’s really not necessary.”

This decision can have massive ramifications on the economy, as President Trump may prove to be more flexible on debt policy, which in turn made the markets worried about the “potential for a default.” As a result, the markets could be set for a downward turn if this unlikely alliance’s plans come to fruition.

Find out more at reuters.com.

 

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
548 views
Economy
548 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
489 views
Economy
489 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
555 views
Economy
555 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…