10 May 2023
Moody's: US debt ceiling now is a “real threat”
Moody’s Analytics is out with a report, expressing its view on the ongoing US debt ceiling showdown.
Key takeaways
“We now assign a 10% probability to a breach.”
“If there is a breach, it is much more likely to be a short one than a prolonged one.”
“But even a lengthy standoff no longer has a zero probability.”
“What once seemed unimaginable now seems a real threat.”
“Spiking interest rates and plunging equity prices,” even if it’s just a brief breach of the debt limit.
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