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Macro Bytes: How will the debt ceiling be resolved?

The US is facing another debt ceiling stand-off, with very high stakes for the economy and markets. We discuss the current impasse and how it could be resolved.

Authors
Paul Diggle
Paul Diggle
Chief Economist
Luke Bartholomew
Luke Bartholomew
Deputy Chief Economist
James McCann
James McCann
Deputy Chief Economist
Lizzy Galbraith, Political Economist, abrdn
Lizzy Galbraith
Political Economist
American flag on top of white building

Duration: 30 Mins

Date: May 26, 2023

The US is facing another debt ceiling stand-off, with very high stakes for the economy and markets. Paul and Luke talk to James McCann, Deputy Chief Economist at abrdn, and Lizzy Galbraith, Political Economist, about the current impasse and how it could be resolved. They discuss the history of the debt ceiling, the likely shape of a deal, the impact of possible spending cuts on the US economy, and the worst-case scenario of a US debt default.

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