June 21, 2024 – 4:32 AM PDT
(Reuters) – A potential debt ceiling standoff in the United States next year could be one of the worst since the 2011 crisis, which may trigger another sovereign credit rating downgrade, said Gennadiy Goldberg, the head of U.S. rates strategy at TD Securities.
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Congress has suspended the debt ceiling until Jan. 1, 2025, even as worries over rising U.S. debt were fueled earlier this week when the Congressional Budget Office (CBO) forecast a jump in the deficit to $1.915 trillion for fiscal 2024 and $1.938 trillion for 2025.
“I certainly worry about debt sustainability. The path of U.S. deficits is highly unsustainable,” Gennadiy Goldberg told the Reuters Global Markets Forum (GMF).
“We’ll get the first whiff of politicians starting to come under a bit of pressure when the U.S. credit rating is downgraded again … possibly as soon…
