Moody's: US debt ceiling now is a “real threat”

Dhwani Mehta FXStreet

Moody’s Analytics is out with a report, expressing its view on the ongoing US debt ceiling showdown.

Key takeaways

“We now assign a 10% probability to a breach.”

“If there is a breach, it is much more likely to be a short one than a prolonged one.”

“But even a lengthy standoff no longer has a zero probability.”

“What once seemed unimaginable now seems a real threat.”

“Spiking interest rates and plunging equity prices,” even if it’s just a brief breach of the debt limit.

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