The US debt ceiling policy could jeopardize the US triple-A rating. This is the warning launched in a note by the rating agency Fitch.
The agency writes that the flop of attempts by Congress to suspend the limit placed on US debt confirms a deadlock that may be among the longest since 2013. That said, Fitch believes that the ceiling on US debt will eventually be raised or suspended. in time to avoid a default.
However, if “the US debt ceiling is not raised or suspended in time, the calculated risk policy, together with lower financial flexibility, could increase the risk of a sovereign debt default”.
A few days ago, in a speech to the American Congress, US Treasury Secretary Janet Yellen warned that Capitol Hill has until next October 18 to raise or suspend the debt ceiling. If it fails to do so, the consequences for the US economy would be very serious, Yellen stressed, as the United States would suffer an unprecedented default.
The scenario is worrying JP Morgan, as the same number one, CEO Jamie Dimon admitted, telling Reuters that the bank he manages is preparing for the possibility of the United States defaulting, although it is convinced that, in the end, it will it will find a solution to avoid a “potentially catastrophic” event.
The number one banking giant in the US has begun to come up with a scenario that simulates how money markets, repo deals, client contracts, JP Morgan’s capital ratios would react and, also, what agency reactions would be. rating.