Markets Seen Following This Blueprint as Debt Ceiling Approaches
- Treasury bills show first signs of rising investor concern
- Focus likely to intensify after Federal Reserve meeting
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For investors wondering when the angst about a U.S. government shutdown or debt default will seep into broader financial markets, they might want to look back at 2013 as a blueprint.
The situation today is eerily familiar to that four years ago. Like in 2013, lawmakers will have little more than two weeks to both pass a budget deal and increase America’s borrowing capacity when they return from their August recess. Not only that, but just like four years ago, Federal Reserve officials are wrestling with the decision of whether to scale back monetary policy accommodation.