U.S. Debt Ceiling and Fiscal Policy: Update on Recent Events
After markets closed on Friday, there was news that progress toward a fiscal policy agreement had deteriorated. The news was a continuation of further uncertainty around a potential inability of policy makers to raise the debt ceiling in time for government operations, transfer payments and debt obligation payments to go on as scheduled. Importantly, several rating agencies including Moody’s and Standard & Poor’s have threatened a downgrade of U.S. debt below the current AAA credit status. The loss of the AAA credit rating could have negative ramifications across all asset classes and capital markets worldwide. The series of events that would follow a downgrade of U.S. debt are unknown at this point.
Heritage Wealth Advisors and the sources we follow broadly anticipate that the debt ceiling will inevitably be raised before the August 2nd deadline but the timing is still uncertain........
Please click the link below for a PDF of the full article.
