Debt Ceiling Disruption: Volatility Ahead?
Play • 25 min

The two-year suspension of the debt ceiling expires on July 31. To avoid the U.S. defaulting on its debts, Congress must act to either extend the suspension or raise the debt limit. Mike Townsend looks at the history of the debt ceiling, the challenges Congress faces in addressing it, and why procrastination could spark market volatility in the weeks ahead.

Mike also offers an update on the Senate’s two-pronged approach to infrastructure and other spending priorities and the aggressive timeline Senate Majority Leader Schumer has set for getting the bills finished. He also looks at Fed Chair Jerome Powell’s testimony before Congress this week and the growing divide at the Fed over when to begin easing its support for the economy, as well as the SEC’s focus on what constitutes a “green” fund. And he considers what President Biden’s recent executive order on competition means, what industries it impacts, and the timeline for change. 

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Important Disclosures

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. 

Investing involves risk, including loss of principal. 

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.

Socially screened or Environmental, Social, and Governance (ESG) strategies exclude certain investments and therefore may not be able to take advantage of the same opportunities or market trends as strategies that do not use social screens.


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