Stocks would crash 'violently' even if US avoids immediate default: Dudley

"I have one message for those observing or involved in the standoff over raising the US federal debt limit: Be afraid, be very afraid," said Dudley, who previously served as president of the New York Federal Reserve."At this point in the financial and economic cycle, the consequences of failing to reach a deal would be particularly dire."

Meanwhile, the White House has maintained that it will only agree to a"clean" deal that lifts the debt ceiling without any spending cuts or other conditions. , Dudley said. Instead, it's more likely that the Treasury would prioritize payments on government debt, while federal workers would have to wait to be paid."Even if prioritization averted an immediate default on Treasury securities, the damage would be vast. Markets — still dealing with the consequences of a rash of bank failures — would be shocked, having expected the usual last-minute deal," Dudley wrote.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Japan activist group hails bourse reform as remedy for undervalued stocksA group of investors led by prominent activist shareholder Yoshiaki Murakami said a push by the Tokyo bourse for better capital efficiency will strengthen their crusade to reduce Japan's unusually high number of chronically undervalued stocks.
Source: Reuters - 🏆 2. / 97 Read more »

Stocks making the biggest moves premarket: First Republic, JPMorgan Chase, SoFi Technologies & moreThese are the stocks posting the largest moves in early trading.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks could retest highs in possible last Fed rate hike: FundstratStocks could soon retest all-time highs as markets react to possible 'thesis changing' final rate hike from the Fed, Fundstrat says
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stocks making the biggest moves midday: JPMorgan Chase, General Motors, Exxon Mobil & moreThese are the stocks posting the largest moves in midday trading.
Source: CNBC - 🏆 12. / 72 Read more »

Here's what's next for bank stocks after the failure of First RepublicThere is cautious optimism on Wall Street that First Republic will be the last bank failure of this period.
Source: CNBC - 🏆 12. / 72 Read more »

U.S. stocks open mixed after regulators seize First Republic Bank, sell to JPMorgan ChaseU.S. stock indexes opened mixed after JPMorgan said it has won the auction to take over fallen First Republic Bank after regulators seized the lender. The Dow Jones Industrial Average gained 51 points, or 0.2%, to 34,148:
Source: MarketWatch - 🏆 3. / 97 Read more »