S&P's Prophetic Warning About Another Debt Ceiling Showdown
- Political divide grows since first U.S. downgrade in 2011
- Treasuries remain the favored refuge of global investors
Mnuchin Says U.S. Debt Ceiling Is Good Through September
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S&P Global Ratings is proving to be a better predictor of U.S. partisan political discord than an adjudicator of creditworthiness in the eyes of the bond market.
Almost six years after revoking its AAA rating for the U.S., the credit arbiter’s rationale for the downgrade remains eerily prophetic. Another showdown over the debt ceiling looms, with the Treasury poised to run out of money by early October unless lawmakers agree to extend the statutory limit on the nation’s borrowing.