WASHINGTON — There's one way to force President Joe Biden and Congress to solve the looming crisis over the debt limit: a financial market crash.
People are also reading… This fandango could persist for several more months until the last possible moment, when the federal government would hit a currently unknown"X-date" — possibly as early as June — and be unable to pay its bills, possibly setting off a default that would suddenly wash away millions of jobs.
Biden, who would reduce deficits largely through higher taxes on the wealthy and corporations, has said he is ready to go through budget agreements"line by line" once McCarthy has his numbers. Analysts at Morgan Stanley a few weeks ago concluded that the most likely"catalyst" to an agreement would be the markets expressing their"fear" of the political and economic"repercussions of default."