Arab Today, arab today us missing deadline manageable for a few days
Last Updated : GMT 21:15:29
Arab Today, arab today
Arab Today, arab today

US missing deadline manageable for a few days

Arab Today, arab today

Arab Today, arab today US missing deadline manageable for a few days

Washington - AFP

Economists said Tuesday that nothing would likely happen for several days if the US misses the October 17 deadline to raise its borrowing ceiling, though markets already showed nervousness. With the White House and Republicans still unable to agree a deal to avoid a crisis, analysts were studying how the once-\"unthinkable\" failure to reach a deal would spill through stock, bond and currency markets come Thursday. Late Tuesday Fitch ratings agency put the United States on warning for a downgrade of its credit rating because the government could be forced into defaulting on its debt. But some analysts said that, despite the Treasury\'s warning that it could be unable to pay its bills as soon as the 17th, there would be at least several days\' respite. \"Congress needs to raise the debt limit by October 17 to avoid disruptions, but missing the deadline by a few days would probably be manageable,\" said Jan Hatzius, chief economist at Goldman Sachs. He took note of the so-far relatively small disruptions in the markets for short-term US debt, where prices have fallen as investors seek to avoid getting stuck with expiring or untradeable Treasury bonds. \"Going past the October 17 deadline is likely to exacerbate those and could deal another blow to confidence. That said, the practical implications of going past October 17 are manageable.\" Economists at Deutsche Bank reiterated their belief that a deal would get done by the deadline, but that, if not, the Treasury \"has the leeway to operate past this date.\" Conceivably, they said, Treasury might have enough operating funds to meet its obligations through the end of October. On Friday, the last day it reported, the Treasury only had an operating cash balance of $34.9 billion, less than half of what it started the month with and against daily expenditures that can sometimes surge to $60 billion. Normally it can borrow to cover shortfalls and match the demand of a chronic fiscal deficit. But Treasury says that from Thursday it will have no more power to borrow given the $16.7 trillion ceiling. As its bills accumulate faster than tax receipts, it will at one point be forced to default on obligations, including potentially the country\'s debt. Analysts say that next week\'s payments schedule at the Treasury is relatively small, so that they should be able to manage. The first challenge, according to the Bipartisan Policy Center, a Washington think tank, is the need to issue $12 billion in checks for social security benefits on October 23. That, and the Treasury apparently deciding not to roll over about $13 billion in debt on Thursday, should leave it with a cash balance of only $10 billion at the end of next week, according to Hatzius. At the end of the month, however, the Treasury faces much larger payouts, for interest on the debt, social security, government salaries, and other benefits -- more than $60 billion all told on October 31 and November 1. \"Given the volatility in the Treasury\'s daily cash flows, as the Treasury\'s cash balance dwindles the risk of a failure to make scheduled payments increases,\" said Hatzius. Investors showed clear worry about the lack of a deal on Tuesday. Stocks fell, erasing much of the gains made on Friday and Monday when investors believed a political solution was in the air. Demand also fell significantly in the Treasury\'s auctions of three- and six-month bonds, while the yields on the debt rose significantly from identical auctions in the past four weeks.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us missing deadline manageable for a few days Arab Today, arab today us missing deadline manageable for a few days

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us missing deadline manageable for a few days Arab Today, arab today us missing deadline manageable for a few days

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Egypt tourism revival steady but slow

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 600,000 children may flee to Bangladesh

GMT 06:49 2017 Monday ,18 September

600,000 children may flee to Bangladesh
Arab Today, arab today Equifax executives step down

GMT 16:16 2017 Saturday ,16 September

Equifax executives step down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today 5,000 'Dieselgate' deaths in Europe per year

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Renault-Nissan to launch

GMT 10:44 2017 Saturday ,16 September

Renault-Nissan to launch
Arab Today, arab today Eman Al Assy receives three offers

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers
Arab Today, arab today 'Severe' Typhoon Doksuri pounds Vietnam

GMT 15:49 2017 Friday ,15 September

'Severe' Typhoon Doksuri pounds Vietnam

GMT 11:10 2017 Friday ,15 September

Fadl Shaker retreats from surrendering himself

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 10:25 2017 Thursday ,14 September

Greece fumbled oil spill response

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:45 2017 Sunday ,17 September

France's hurricane-hit St Martin

GMT 21:57 2017 Sunday ,17 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday