House GOP leader Kevin McCarthy’s deal with ultraconservative Republicans to get their votes in the speaker election includes provisions that increase the possibility of a market-rattling showdown over the US debt ceiling later this year.
One of the main demands of the GOP faction McCarthy had to negotiate with was using the nation’s debt limit to try to force deep cuts in the federal budget. The issue will come to a head sometime after July 1 when the $31 trillion limit will need to be raised to prevent a default on debt payments.
