U.S. leaders gamble with world's most trusted asset in debt showdown

Original source (on modern site) | Article images: [1]

Hundreds of banks, hedge funds and investment managers as soon as early June could begin holding multiple daily conference calls to handle the fallout from a possible U.S. debt default, activating a "break-glass-in-case-of-emergency" playbook that has never before been tried.

President Biden and House Speaker Kevin McCarthy (R-Calif.) on Saturday reached an "agreement in principle" to raise the federal debt ceiling, but any deal still requires congressional approval. Treasury Secretary Janet L. Yellen has indicated that the federal government would exhaust its funds by June 5 if the debt ceiling remains the same.