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Us Debt Default

All articles tagged with #us debt default

finance2 years ago

Debt ceiling deal impact on Treasuries and market volatility.

Despite being threatened by a possible US debt default, Treasuries remain more attractive than just about everything else due to their safety and stability. The United States has averted a formal default, after another wild, unnerving ride. The best answer for wary investors may be exactly what it was before this crisis: For safety, buy Treasuries. Through countless crises in the United States and abroad, investors have flocked to the $24 trillion Treasury market just about whenever they have needed a haven.

via The New York Times|
#finance#investment#safety
finance2 years ago

Debt talks and Fed minutes weigh on stocks.

US stocks closed lower as investors worry about a potential US debt default, with the S&P 500 down 0.73% and the Dow Jones Industrial Average falling 0.77%. The Federal Reserve released minutes showing officials were divided on the future of interest rate increases. Meanwhile, shares of Palo Alto Networks rose more than 7% after the cybersecurity company reported better-than-expected earnings, and Toll Brothers beat expectations as mortgage rates stabilized and improved buyer confidence boosted demand. Kohl's Corporation also posted a surprise profit for the first quarter, while PacWest Bancorp shares sank more than 2% after the bank sold its real-estate lending arm.

via Yahoo Finance|
#cybersecurity#federal-reserve#finance
energy2 years ago

Oil prices struggle amidst economic uncertainty and demand concerns.

Oil prices have fallen below $70 for West Texas Intermediate and below $74 for Brent due to concerns over the US debt default and uneven reopening in China. Congress needs to agree on a higher debt ceiling as soon as possible, as the state's coffers will run out by June 1st. The market is looking out for potential demand revisions in this month's IEA report. Since the start of the year, oil has lost some 13%, and traders have accumulated the largest short position on the commodity since July 2021.

via OilPrice.com|
#china#demand-outlook#energy
politics2 years ago

"Uncertainty looms as Social Security advocates warn seniors to prepare for possible debt default in July"

Social Security advocates warn beneficiaries to be prepared in case their payments are interrupted due to the increasing odds of a U.S. debt default. Negotiations around whether the nation's ability to borrow money should be expanded have been ongoing, but Congress and the White House have yet to reach an agreement on the path forward. Dan Adcock, director of government relations and policy for the National Committee to Preserve Social Security and Medicare, said there is a "good chance" that in the event of a default, millions of Americans' benefits would be disrupted. However, analysts suggest it isn't certain that the government will miss payments to Social Security recipients in the event of a default.

via NBC News|
#beneficiaries#congress#negotiations
finance2 years ago

Jamie Dimon cautions against panic as U.S. nears debt default.

JPMorgan Chase CEO Jamie Dimon has warned that panic will grip markets as the U.S. approaches a possible default on its sovereign debt, which he called "potentially catastrophic" for the country. While he expects the worst-case scenario to be avoided, Dimon said that if it gets to the panic point, people have to react, and it could affect other markets around the world. JPMorgan has been preparing for the risk of an American default, and Dimon exhorted politicians from both major U.S. parties to compromise and avoid a ruinous outcome.

via CNBC|
#finance#jamie-dimon#jpmorgan-chase
finance2 years ago

Fed Chair Powell Addresses US Debt Default and Inflation Concerns

Federal Reserve Chairman Jerome Powell has warned of “highly uncertain and adverse” economic consequences if the U.S. defaults on its debt obligations. Powell stressed that the Federal Reserve does not get involved in negotiations on this topic, stating: “We don’t give advice to either aside … We just would just point out that it’s very important that this be done.” As Democrats and Republicans remain deadlocked over raising the debt ceiling, Treasury Secretary Janet Yellen revealed this week that the Treasury Department will not be able to pay all of the government’s debt obligations “as early as June 1, if Congress does not raise or suspend the debt limit before that time.”

via Bitcoin News|
#debt-ceiling#economic-consequences#federal-reserve
politics2 years ago

Intel Chief Warns of China and Russia Exploiting US Debt Default

Director of National Intelligence Avril Haines warned that China and Russia would likely use a U.S. debt default to portray the U.S. as a dysfunctional, chaotic, and unstable nation. A domestic debt default would create global uncertainty about the U.S. dollar's value and lead to volatility in currency and financial markets. Treasury Secretary Janet Yellen warned that if Congress failed to raise the debt limit, it "would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests." President Joe Biden will meet with congressional leaders to try to reach a solution to avoid a default, but so far, there's no sign of an imminent resolution.

via NBC News|
#avril-haines#china#global-uncertainty
finance2 years ago

US Debt Default Looms: Impact and Avoidance Strategies.

The US Treasury market is pricing in the possibility of a US debt default in July, with the difference in yields between US Treasury bills maturing in May and July hitting a record 1.49%. The market is being heard in short-term Treasury bills and their current yields, with investors seeking a higher rate of return for the risk they're taking on by buying Treasury securities that are scheduled to mature during the summer months that a debt default could happen. The outlook gets more precarious into June, July, and especially August unless Congress quickly acts to raise the debt ceiling limit.

via Yahoo Finance|
#congress#finance#risk