US debt ceiling talks will take time, but agreement expected: Moody’s IG News

NEW YORK: The US Congress is likely to reach an agreement on a new debt ceiling before the Treasury ends extraordinary cash management measures, Moody’s Investors Service said in a note on Thursday.

The US government hit its $31.4 trillion borrowing limit on Thursday amid a standoff between the Republican-controlled House of Representatives and President Joe Biden’s Democrats, which could lead to a fiscal crunch in a matter of months.

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Moody’s said it expected an agreement to be reached “very late or in an incremental manner”, potentially contributing to greater volatility in financial markets.

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