Us Debt

Structural demand for US debt strong despite market volatility: Moody's

Earlier this month, Moody's lowered its outlook on the US credit rating to "negative" from "stable" citing large fiscal deficits and a decline in debt affordability

US public debt is projected to reach 181% of economic activity in 30 years

The Congressional Budget Office is giving the world a concerning look at the US government's ledgers: ever higher deficits, greater government spending and tax revenues that only begin to increase when existing tax cuts expire. The nonpartisan agency estimates in its latest 30-year outlook, released Wednesday, that publicly held debt will be equal to a record 181 per cent of American economic activity by 2053. That compares with a projected 98 per cent at the end of this budget year, a sign the government is getting more dependent on debt to pay for Social Security, Medicare, the military, infrastructure and an array of programs that benefit millions of households. The higher debt load is not all that shocking given the deficit spending of the past two decades. But the CBO figures do offer a bit of comfort in that annual deficits after 2042 are lower than forecasted in the agency's report from last year. This is because the primary borrowing and interest rate costs are lower than wha

The frantic push to solve sovereign debt crises irks Wall Street

In New York, a cohort of debt-relief activists and US state politicians are pushing for a more-permanent solution: a law that would overhaul the process of restructuring sovereign debt

Crypto wrap: US debt ceiling negotiations keeping market on the toes

The negotiations around the US debt ceiling have been slow, but media reports suggest that US President Biden and US House of Representatives Kevin McCarthy appeared to be nearing a deal on Thursday

Biden aims to assure world leaders that US won't default on its debt

President Joe Biden tried to reassure world leaders on Saturday that the United States would not default as he consulted with the heads of Australia, Japan and India in a meeting of the so-called Quad partnership that had been hastily rescheduled because of the debt limit standoff back in Washington. Hoping to avert an outcome that would rattle the global economy and prove to be a boon to Beijing, Biden opened his third day in Japan at the annual Group of Seven meeting of the world's most powerful democracies with a briefing from his staff on the latest fits and starts in talks over how to raise the federal debt limit. The president also squeezed in meetings aimed at challenging China's buildout across the Indo-Pacific. The Quad members originally had planned to meet in Sydney next week, but got together instead on the sidelines of the G7 so Biden could return to Washington earlier on Sunday in hopes of finalising a deal to increase the U.S. borrowing limit before the government run

Wall Street gains, dollar climbs on solid data, debt ceiling progress

The three major U.S. stock indexes initially wavered but soon gathered strength, with tech shares putting the Nasdaq out front

Sensex sheds 413 pts as HDFC twins, RIL weigh; Nifty ends below 18,300

CLOSING BELL: The BSE Midcap, Smallcap indices, however, bucked the trend and ended with a gain of up to 0.2 per cent. Breadth too was marginally positive.

Debt deadline: Yellen's alarm sets White House meeting, but no solution yet

Facing the risk of a an unprecedented U.S. government default by month's end, President Joe Biden has invited the top four congressional leaders to face-to-face talks at the White House next week. It's the first concrete step toward negotiations on averting a potential economic catastrophe, but there's a long way to go: Biden and Republicans can't even agree on what's up for negotiation. WHAT'S THE PROBLEM? If the government's legal borrowing limit of $31.4 trillion is not raised or suspended in the next few weeks, the result could be financial havoc. If the government can't borrow money to keep paying its bills for an extended period, there could be millions of job losses, businesses left bankrupt, crashes piling up across financial markets and lasting economic pain. The damage would be financial, but the cause would be political, a breakdown between Republicans and Democrats, rather than a problem with the underlying health of the U.S. economy. The scheduling of next Tuesday's Wh

Prez Biden, top lawmakers to discuss debt limit at White House May 9

President Joe Biden has sought to ease a debt limit standoff by inviting the four Congressional leaders to the White House on May 9 signalling the growing fears of a default as the federal government might be unable to pay its bills as soon as June 1. Administration and congressional officials confirmed the individual calls to lawmakers and the meeting date, insisting on anonymity to discuss the plans. Sen. Minority Leader Mitch McConnell, R-Ky., said he spoke with Biden and expects to speak with him again, though he did not say whether he will attend the meeting. Biden plans to stress that Congress must take action to avoid default without conditions and will discuss the urgency of preventing default, as well as how to begin a separate process for passing a separate fiscal 2024 budget. But if even the lawmakers talk, there is no guarantee of progress on an issue that has revealed a gulf in how Democrats and Republicans think the country should be governed. Biden and House Speaker

Janet Yellen projects that US could hit debt ceiling as soon as June 1

Treasury Secretary Janet Yellen has notified Congress that the US is projected to reach its debt limit as early as June 1, if the body does not raise or suspend the debt limit before then. In a letter to House and Senate leaders, Yellen urged Congress to protect the full faith and credit of the United States by acting as soon as possible to address the USD 31.4 trillion limit on its legal borrowing authority. We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States," she said in the letter. The Treasury said on Monday it plans to increase its borrowing during the April to June quarter of this year, even as the federal government is close to breaching the debt limit. The US plans to borrow USD 726 billion during the quarter. That's USD 449 billion more tha

US Prez Biden, Speaker McCarthy to discuss debt limit in talks on Wednesday

House Speaker Kevin McCarthy said Sunday he is looking forward to discussing with President Joe Biden a reasonable and responsible way that we can lift the debt ceiling when the two meet Wednesday for their first sit-down at the White House since McCarthy was elected to the post. McCarthy, R-Calif., said he wants to address spending cuts along with raising the debt limit, even though the White House has ruled out linking those two issues together as the government tries to avoid a potentially devastating financial default. The speaker pledged that cuts to Social Security and Medicare would be off the table. I know the president said he didn't want to have any discussion (on cuts), but I think it's very important that our whole government is designed to find compromise, McCarthy told CBS' Face the Nation. I want to sit down together, work out an agreement that we can move forward to put us on a path to balance and at the same time not put any of our debt in jeopardy at the same ...

US Prez Biden meets with Democratic leaders as debt showdown looms

President Joe Biden hosted the Democratic congressional leaders Tuesday at the White House as they face a new era of divided government in Washington, staring down a debt ceiling crisis, the Russian war in Ukraine and their own party priorities running up against a new House Republican majority eager for confrontation. The president and top congressional Democrats used the gathering in the Roosevelt Room at the White House to project a unified front against Republicans who are threatening a showdown over raising the nation's borrowing authority. The White House has stressed repeatedly that it wants Congress to lift the debt ceiling without conditions, and Democrats tried shift the onus onto House Republicans to put their cards on the table, rather than enter into any negotiations with a GOP that has yet to spell out how much and what they want to cut. As the meeting began, Biden said Democrats were eager to talk about extreme Republican economic plans. Apparently they're genuinely

US midterm: Republicans limp toward house control with Senate still in play

While Democrats have reason to rejoice, the fate of President Joe Biden's legislative agenda still hangs in the balance and the prospect of government gridlock looms

US' gross national debt surpasses $31 trillion as new fiscal year begins

The nation's gross national debt has surpassed USD31 trillion, according to a US Treasury report released Tuesday that logs America's daily finances. Edging closer to the statutory ceiling of roughly USD31.4 trillion, an artificial cap Congress placed on the US government's ability to borrow, the debt numbers hit an already tenuous economy facing high inflation, rising interest rates and a strong US dollar. And while President Joe Biden has touted his administration's deficit reduction efforts this year and recently signed the so-called Inflation Reduction Act, which attempts to tame 40-year high price increases caused by a variety of economic factors, economists say the latest debt numbers are a cause for concern. Owen Zidar, a Princeton economist, said rising interest rates will exacerbate the nation's growing debt issues and make the debt itself more costly. The Federal Reserve has raised rates several times this year in an effort to combat inflation. Zidar said the debt "should

Bonds strengthen sharply as growth fears drag down US debt yields

Rupee notches up gains as dollar index eases; OPEC meet in focus

Yellen: October 18 is point-of-no-return to deal with US debt

The US Treasury Secretary had warned Congress three weeks ago that the Treasury would run out of maneuvering room by mid-October

Treasury Secretary Yellen warns US may hit debt limit in October

Treasury Secretary Janet Yellen is warning Congress that she will run out of maneuvering room to prevent the US from broaching the government's borrowing limit in October

US owes India $216 bn as American debt soars to $29 trillion: Lawmaker

In 2020, the US national debt was $23.4 trillion, that was $72,309 in debt per person

US budget deficit debt to hit $3.3 trillion, bigger than its economy's size

The spike in the deficit means that federal debt will exceed annual gross domestic product next year

Kenneth Rogoff: America's looming debt decision

With the economy normalising, the case for creative policies seems weaker. The US should consider borrowing at longer horizons