Replay of debt ceiling drama in Washington may spook markets, hurt economic recovery

Treasury Secretary Janet Yellen has warned Congress that the nation could default on its debt sometime next month if it does not raise or suspend the limit.
Treasury Secretary Janet Yellen has warned Congress that the nation could default on its debt sometime next month if it does not raise or suspend the limit.PHOTO: AFP

SINGAPORE - The debt ceiling drama is back in Washington after a two-year respite with all the usual political horseplay that risks complicating the financial calculus of the Covid-19-marred economic recovery worldwide.

If United States legislators fail to strike a deal on how much President Joe Biden can borrow to fund his ambitious budgetary measures in the next few weeks, fears of a government shutdown and potential default will stoke volatility in financial markets.

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