Saturday, September 23, 2023
HomeUnited StateUnited States, public debt, financial markets: walls and floors

United States, public debt, financial markets: walls and floors

Written January 18, 2023, 3:12 p.mUpdated on January 18, 2023 at 15.29.

Equity markets were expected to test lows this year. But they explore the attics. However, there is another limit, namely the US federal debt.

Treasury Secretary Janet Yellen activated “extraordinary measures” to avoid reaching the legal ceiling of $31.381 billion on Thursday, which would force the government to cut spending. She thinks “to keep” like this until June. Goldman Sachs instead assesses between August and October the materialization of the “biggest political risk” in 2023.

The disagreements in Congress could see the repetition of the economic tensions of 2011. John Plassard, of Mirabaud Securities, recalls that they led to the loss of the US triple A rating by making the markets doubt the safe harbor asset pair excellence.

To note

The “usual measures” in the hands of Treasury Secretary Janet Yellen, without having to resort to a vote in Congress, consist of replenishing the federal coffers by drawing on certain public pension and health care funds (by unwinding investments and ceasing to fill them up).

Goldman Sachs identifies a first moment of tension between the end of August and the beginning of September, when the funds will experience a decline before the payment of corporate tax, which would restore some oxygen until October.

The bank points out that the political and fiscal conditions are similar to those of 1995 and 2011, when the achievement of the debt ceiling created extreme tensions about the financing of the federal state.

One of the factors she particularly watched in late December to anticipate the difficulties of future debates on the federal deficit was the possible return of a single elected official triggering a vote of confidence in the person as the “speaker” of the House of Representatives . However, this risk became a reality during the difficult election in early January of Kevin McCarthy, who made this concession to get his seat. The Republican “speaker” will find himself weakened to arbitrate the disagreements between Democrats and Republicans.

What keys to adapt in a complex environment?

How do you respond to the challenges of the energy transition? How do you position yourself in an unstable economic and political environment? How can the innovation opportunities in each sector be best utilized? On a daily basis, through our decryptions, investigations, chronicles, international press reviews and editorials, we support our subscribers by giving them the keys to adapt to a complex environment.

I discover the offers



  1. After reading your article, it reminded me of some things about gate io that I studied before. The content is similar to yours, but your thinking is very special, which gave me a different idea. Thank you. But I still have some questions I want to ask you, I will always pay attention. Thanks.


Please enter your comment!
Please enter your name here

Most Popular

%d bloggers like this: