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Debt ceiling debate approaches 11th hour. Economists at ANZ Bank discuss the possible deal.
“We anticipate that a deal will be reached to suspend the debt limit for a few months to provide more time to negotiate a mutually satisfactory outcome. Negotiations over that period are likely to be fractious, causing financial market volatility and disrupting growth.”
“The Democrats and Biden will most likely need to reach a compromise agreement with the Republicans that incorporates long-term budget savings in return for a reasonable increase in the debt limit or a lengthier suspension period.
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