Risk of Debt Default Is ‘Non-Trivial,’ Warns JPMorgan
JPMorgan has warned that there’s a “non-trivial risk” of a default on U.S. government obligations as the debt-limit deadline looms with no agreement in sight.
Analysts at the bank said in the Wednesday note that they expect the debate over the debt ceiling as well as the one on the federal funding bill to come “dangerously close” to their respective deadlines.
The United States reached its $31.4 trillion debt ceiling in January, leaving it to a politically divided Congress to raise the cap and allow the government to keep paying its bills.
Democrats have insisted on a bill with no preconditions to raise the debt ceiling, while Republicans have demanded spending cuts in exchange for their support to lift the borrowing cap….