The Conference Board Economics Watch® United States View

  • Authors:
    Kathy Bostjancic
  • Publication Date:
    October 2013
  • Report Number:
    EWUV_V3N10

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An immediate catastrophic government default looks likely to be averted as Congress works toward adopting a debt compromise that would extend the debt ceiling limit through early February and reopen the government through mid-January. However, a critical question is given the current dysfunctional political environment in Washington, what will a few months provide and do we face the prospect of a government default again in early February 2014? A long-term extension in the debt ceiling is the most optimal solution for the economy and financial markets, but looks unlikely at this time.

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