American financial firms are expressing alarm over fears that an increasingly dysfunctional US Congress may fail to reach an agreement to raise the country’s debt ceiling.
Bitter divisions among Republican Party lawmakers and President Donald Trump’s unpredictability could rule out a deal to raise the US debt limit before an October deadline, several lobbyists representing dozens of bankers, investors and credit rating agencies, told Reuters.
Trump’s attacks on members of his own party and his failure to denounce white supremacists at a violent protest in Charlottesville, Virginia, this month, has raised questions over the president’s ability to build consensus on the debt limit, one bank lobbyist said.
“Everyone is very worried,” he added.
The debt ceiling is a legislative limit on how much money the federal government can borrow from the US Treasury Department to fund its budget deficits and meet financial obligations.