U.S. debt default crisis
After weeks of intense negotiations, the White House and Republicans finally agreed in principle to raise the U.S. national debt ceiling. Let people around the world who are concerned about the economic crisis in the United States breathe a sigh of relief. However, the agreement still needs to be approved by Congress.
President Joe Biden called the deal a “compromise,” while Republican House Speaker Kevin McCarthy said it “makes historic cuts in spending.”
The U.S. Treasury Department has previously warned that if there is no agreement, the United States will not be able to pay its bills on June 5. If this happens, it will subvert the U.S. economy and seriously damage global markets.
The Federal Reserve raises interest rates for the tenth consecutive time, and outsiders expect the end of this round of interest rate hikes is approaching
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China has sold U.S. bonds for two consecutive months, raising the possibility of “weaponizing” U.S. debt
With a US$24 trillion U.S. debt market, it is the world’s largest debt market and the main source of financing for the U.S. government. From mortgage rates to the world’s strongest U.S. dollar currency, U.S. debt is an indispensable financial item. According to US media reports, due to the credibility guarantee of the US government, US debt is sometimes regarded as equivalent to cash. Faced with the US debt default crisis, the global financial industry is nervous.
