The U.S. debt ceiling will be reached in mid-January instead of the previously expected January 2nd.
In this letter, Yellen expressed:
A new debt ceiling will be established on January 2nd, which will equal the debt value on January 1st.
However, on January 2nd, there will be a redemption from a trust fund that will reduce the debt by $54 billion. This means the U.S. government can continue to borrow $54 billion.
According to her estimates, the new debt ceiling will be reached between January 14-23 (this, of course, depends on the government's spending pace).
I mentioned the debt ceiling issue a long time ago; this is a form of monetary easing. Because before a new debt ceiling is negotiated, the Treasury will use "extraordinary measures," which means spending the money in the TGA, effectively acting as a buffer. Currently, there is $764 billion in the TGA, which is enough for the government to spend for several months.
In other words, the bull market may be delayed until mid-January to kick off.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
