Recession Concerns Grow As Debt Limit Deadline Looms

Erie News Now Image.

The Federal Reserve Bank of New York releases its quarterly report on household debt and credit based on the first quarter of this year later Monday.

Analysts anticipate credit card balances will pass one-trillion dollars for the first time in history.

Meanwhile, talks about raising the U.S.’s spending ceiling remain in stalemate.

It’s the start of a new week, and the debt ceiling drama is still hovering over Washington D.C.

President Joe Biden and top congressional leaders, including House Speaker Kevin Mccarthy, are expected to meet again this week to discuss the matter.

McCarthy and house Republicans say they will raise the debt limit 1.5 trillion dollars if cuts are made to the budget.

According to Moody’s Analytics, a prolonged debt limit breach could cut thousands of jobs nationwide and some economic analysts are warning that a recession is likely to come sometime during the second half of this year.

Treasury Secretary Janet Yellen recently warned that the U.S. could default on its obligations as soon as June 1 if Congress doesn’t find a solution.


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