US Debt Default Risk Grows Amid Weak Tax Collections and Political Impasse

Former US Treasury Secretary Lawrence Summers has said that the chances of a technical default on US debt due to legislation around its borrowing limit are at around 2%-3%, but any default would be fixed quickly. Summers also said that the chances of a default due to insolvency were much lower. The comments come as Republican US House Speaker Kevin McCarthy said lawmakers would vote on Wednesday on a bill to raise the $31.4tn federal debt ceiling and slash spending, despite lingering dissension within their ranks over the bill.