Bipartisan Policy Center: Warnings of a possible US debt default
The Bipartisan Policy Center predicts that the United States will face the possibility of defaulting on its sovereign debt between mid-July and early October.
Experts at the Bipartisan Policy Center warn that the “day of reckoning” could come in June, in the worst-case scenario.
The center’s analysts explained that this timing depends largely on the revenues the US government will collect after the tax season next April.
According to data from the US Treasury Department, the total US public debt reached $36.22 trillion as of March 24.
According to Shai Akbas, director of economic policy at the center, warned that Congress’s delay in addressing the debt ceiling will exacerbate economic instability.
Akbas added that even approaching a default could lead to volatility in financial markets, increase borrowing costs, and undermine confidence in US financial stability.
The crisis stems from the ongoing political dispute between the two parties over raising the debt ceiling, and the Treasury Department has warned of potentially catastrophic consequences if the debt isn’t repaid.
