Debt Ceiling Looms Over Shutdown Talks That Are at a ‘Mind-Numbing’ Impasse
- Deal needed by Friday deadline to keep U.S. government open
- Rating companies have warned of the risk of debt-cap battle
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The standoff in Washington that’s increasing the chances of another U.S. government shutdown at the end of the week is also raising the specter of bigger risks as the reinstatement of the debt-ceiling approaches in early March.
Moody’s Investors Service analysts have warned that shutdown 2.0 could have a “more severe impact” on U.S. output. And if it were to extend beyond the March 1 end of the suspension of the current cap on America’s statutory debt capacity, “it would complicate negotiations over the debt ceiling.”