Stocks dipped on Monday as lawmakers remained in a standoff over raising the debt ceiling to avoid default, but investors were convinced a compromise will be reached before next week’s critical deadline.
These are givens, and they are the reasons for public outrage. However, it doesn’t mean the government shouldn’t raise the debt ceiling. Standard & Poor’s warns there is a 50% chance it will lower the U.S. government’s AAA credit rating by one or more levels within three months.
The Federal Reserve Chairman has issued a stern warning to Congress repeatedly this year: if it fails to raise the U.S. debt ceiling by Aug. 2, the economic fallout could be "catastrophic," "self defeating" and "dire."
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