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Wall Street executives who have advised the U.S. Treasury's debt operations for the past 25 years warned on Tuesday they are "deeply concerned" about the debt limit impasse that has markets worried about a U.S. default on payment obligations.
In a letter to Treasury Secretary Janet Yellen, current and former leaders of the Treasury Borrowing Advisory Committee said the costs of the current standoff extend beyond markets to the time that financial firms are having to spend preparing for a possible default.
A variety of observers have actually raised issues about the result that the continuous brawl over loaning may
There are contingency plans in place, but damage would be inevitable.
<p class="Body">May 2, 2023</p> <p>Letter to the Secretary</p> <p>Dear Madam Secretary:</p> <p>Since the last TBAC meeting, markets have focused on the outlook for US economic growth, inflation, and Fed policy. In March, emergent risks to financial stability increased market attention on downside risks to economic activity and Fed policy rates, provoking extraordinary volatility in short-term Treasury yields. More recently, risks around the debt ceiling have led to some distortions in the T-bill yield curve, and mea...