|

Democrats to launch discharge petition and are aiming to force debt ceiling vote – WSJ

Citing Brendan Boyle, the top-ranking Democrat on the House Budget Committee, the Wall Street Journal (WSJ) reports that House Democrats will begin collecting signatures Wednesday for a discharge petition to raise the debt ceiling, in a desperate attempt to circumvent House Republican leadership and force a vote.

Key takeaways

“We only have two weeks to go until we may hit the x-date.”

“We must raise the debt ceiling now and avoid economic catastrophe.”

“I’ve always said a discharge petition is not a high-probability move. But at this point, we must try whatever it takes.”

“I urge my Republican colleagues, especially those who like to call themselves moderate at election time, to join us and ensure America pays its bills.”

“It takes the signatures of 218 House members—a majority, regardless of party—to move a bill to the floor by discharge petition. Republicans control the House, 222-213, so for their petition to succeed, Democrats would need at least five GOP representatives to sign on,” according to the WSJ.

Market reaction

Risk sentiment is taking a hint on the above headlines, strengthening the rebound in the US Dollar across the board. At the time of writing, the US Dollar Index is adding 0.41% on the day to trade at 102.98.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

More from Dhwani Mehta
Share:

Editor's Picks

GBP/USD clings to moderate gains near 1.3400

GBP/USD enters a consolidation phase near 1.3400 after closing in positive territory on Tuesday. Weaker-than-expected June CPI readings from the US make it difficult for the US Dollar to gather strength and allow the pair to stay afloat. Fed Chair Warsh's second day of congressional testminoy and US producer inflation data could ramp up the market volatility in the American session.

EUR/USD holds steady above 1.1400 ahead of US data

EUR/USD stabilizes following Tuesday's rebound and trades in a narrow channel above 1.1400. The US Dollar (USD) struggles to stay resilient against its rivals following the soft inflation data but escalating tensions in the Middle East limit the pair's upside for now. Later in the day, June producer inflation data from the US will be watched closely by market participants.

Gold struggles to build on Tuesday's gains, retreats toward $4,000

After rising more than 1% on Tuesday, Gold loses its traction midweek and declines toward $4,000. While the USD stays on the back foot following the soft June inflation data, escalating tensions in the Middle East causes XAU/USD to stretch lower. Markets await PPI data from the US, while keeping a close eye on headlines surrounding the US-Iran conflict.

Bitcoin, Ethereum, and Ripple show tentative recovery as key technical levels hold

Bitcoin, Ethereum and Ripple trade with a mild positive bias on Wednesday as sentiment improves across the cryptocurrency market. BTC is testing its 50-day Exponential Moving Average, ETH has broken above a key resistance level at $1,800, while XRP has found support around a key level.

2% and nothing else: Why Warsh gave Congress three hours of Greenspan

The Federal Reserve Chair who wants the institution to say less spent Tuesday legally required to say more, on the one morning the data handed him something pleasant to say. June's Consumer Price Index fell 0.4% on the month, the steepest single-month decline since April 2020.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.