Economics
US Must Raise Debt Limit by Summer to Avoid a Default, BPC Says
- CBO last week saw payment default risk looming as soon as July
- April tax receipts expected to be key in determining date
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Congress must raise the US federal debt ceiling by the summer or early fall in order to avoid the risk of a federal payment default, according to the widely followed Bipartisan Policy Center model.
“The economic uncertainty injected into this model is significant,” said Rachel Snyderman, BPC senior associate director, in explaining the months-long range provided. “There is significant revenue volatility especially given the state of the economy.”