debt ceiling

Robin Harding

I did a piece for today’s paper on what would happen if the debt ceiling was not raised on time. Here are a few extra points arising from the reporting for that piece:

(1) The Treasury becomes constrained by the debt ceiling at the point when its account with the Federal Reserve is forecast to be overdrawn at the end of the day. The August 2nd date cited by the Treasury is the last day that it expects to undertake normal operations and end below the limit. So the constraint would most likely bite, and the chaos start, on the 3rdRead more