{"id":24830,"date":"2023-04-26T16:56:06","date_gmt":"2023-04-26T16:56:06","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/us-debt-ceiling-technical\/"},"modified":"2023-04-26T16:58:19","modified_gmt":"2023-04-26T16:58:19","slug":"us-debt-ceiling-technical","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/us-debt-ceiling-technical\/","title":{"rendered":"US debt ceiling technical default seen at 2%-3%, says Summers"},"content":{"rendered":"<p>By Davide Barbuscia<\/p>\n<p>CHICAGO (Reuters) &#8211;     Former U.S. Treasury Secretary Lawrence Summers said the odds that the U.S. government could face a technical debt default due to legislation around its borrowing limit were at around 2%-3%, but that any default would be fixed quickly.<\/p>\n<p>A standoff between Republicans and Democrats over raising the U.S. borrowing limit has started to impact money markets, with incoming tax receipts recently indicating that the deadline to raise the $31.4 trillion borrowing limit could be sooner than expected.<\/p>\n<p>&#8220;I think the odds on a technical default associated with the debt limit legislation over the next few months are 2% or 3%, and if it happens it will be repaired fairly quickly,&#8221; Summers said at a Morningstar investment conference in Chicago.<\/p>\n<p>He said that the chances of a default due to insolvency were, instead, much lower.<\/p>\n<p>&#8220;I think the odds that we will default in the sense of insolvency, and over some interval people who hold bonds will not be able to get paid, are &#8211; assuming the absence of a major war &#8211; certainly under 2% over the next decade.&#8221;<\/p>\n<p>The comments come as Republican U.S. House Speaker Kevin McCarthy said lawmakers would vote on Wednesday on a bill to raise the $31.4 trillion federal debt ceiling and slash spending, despite lingering dissension within their ranks over the bill.<\/p>\n<p>On the other hand, the White House has called on Congress to raise the debt limit without conditions, as it did three times under Biden&#8217;s Republican predecessor, Donald Trump.<\/p>\n<p>JPMorgan warned last week that there was a &#8220;non-trivial&#8221; risk of a technical default on U.S. Treasuries, and that the debate over the debt ceiling would likely run &#8220;dangerously close&#8221; to its final deadline.<\/p>\n<p \/>\n<p> (Reporting by Davide Barbuscia)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/us-debt-ceiling-technical\/file-photo-lawrence-summers-deliver-remarks-at-the-national-association\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0TU-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P0TU-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Davide Barbuscia CHICAGO (Reuters) &#8211; Former U.S. Treasury Secretary Lawrence Summers said the odds that the U.S. government could face a technical debt default due to legislation around its borrowing limit were at around 2%-3%, but that any default would be fixed quickly. A standoff between Republicans and Democrats over raising the U.S. borrowing [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":24831,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-24830","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0TU-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=24830"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24830\/revisions"}],"predecessor-version":[{"id":24832,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24830\/revisions\/24832"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/24831"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=24830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=24830"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=24830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}