Securities and Exchange Commission Chair Gary Gensler spoke of the consequences of failing to raise the borrowing limit at a House Financial Services Committee hearing. | Securities and Exchange Commission Chair Gary Gensler warned Congress Tuesday that a U.S. debt ceiling breach threatened to unleash significant volatility and disruption in financial markets, as lawmakers remained at odds over how to avoid a government default.
Gensler — the top U.S. regulator overseeing Wall Street — said at a House Financial Services Committee hearing that the failure to raise Washington's borrowing limit would create uncertainty for banks, mortgages, automobile loans and other financial instruments reliant on U.S. Treasury bills. The federal government borrows money to cover its operations and debts by issuing Treasury securities to investors.
"I think we'd be in very uncharted waters," Gensler said, noting that Treasurys are the foundation of U.S. capital markets. "Though we don't know for sure, we'd have significant volatility in the markets, and we'd see some breakages in the system." Treasury Secretary Janet Yellen has warned that Treasury could run out of money by Oct. 18. Earlier Tuesday, she saidThe Senate is expected to vote later this week on a House-passed bill to suspend the debt ceiling through the 2022 midterms, but Republicans are expected to block the measure.
This makes sense: Stocks will be volatile until they can prove their inflation resilience, these strategists say
MadMerlin5 .... and the GQP, the party of chaos, LOVES IT
Republicans & their investors will take a direct personal hit from this. They should seriously reconsider. GOP
BECAUSE REPUBLICANS ARE HAPPY TO BURN IT ALL DOWN
The fact that ONE MAN could stop America from functioning, and has threatened to do so, is just PROOF POSITIVE, Mitch McConnell is The GOP Party of One, with THE POWER to (again, stop The Majority) and DICTATE ... This debt default and Obama pick for Supreme Court. Too much!
mary_swilling They know all to well .
The GOP does not care. Just explodes the debt and then votes not to overturn at its bills. Hopes that the ignorant cult does not care about the truth.
Republicans couldn't overthrow the government with a insurrection so they turn their attention to destroying it with a major default that will sink the economy, raise interest rates and slow down social security payments as the government cannot borrow money.
I don't think the fat cat multi-millionaire republican campaign contributors are going to look favorably on republicans pushing the nation into default and watching their investments tank when the market crashes.
Talk to Moscow Mitch
Why is he warning Congress? It’s the Republicans!
Dems..AGAIN must fix a Republican mess
Yet the 3 times it was raised during the Trump Administration didn’t cause this same problem?
Mr. Biden seems to be making a compelling speech. Maybe it will work.
Correction: warned Republicans…Democratic know what it means if it isn’t raised
Don’t care
talk to Mitch and his buds.... I hope Dems DO NOT give in. Or we will never win. Cut republicans at the knees ! Stop THEIR ROLL.
Disruption and shock are such kind words. It would be cataclysmic.
GQP wants this so they can blame BIden
After a failed insurrection, the debt ceiling breach is an easier attempt to destroy America
Ca$h gang, wya? 💰
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