Weekend Wall Street #43 - Debt Default, the Fed, and Trade Plans
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Happy Sunday everyone and welcome back to Weekend Wall Street. We finally got some movement in the market indexes with what seems to be a breakout to the upside!
The big news on Wall Street this week continues to be the debt ceiling talks down in Washington, with talks looking optimistic at the beginning of the week, but a sell off at the end of the week when Bloomberg reported talks were on pause.
The market isn’t paying too much attention to this as usually this happens and the ceiling gets raised. Reports this weekend say Biden is planning on calling Kevin McCarthy and that he believes an agreement will be reached.
How will this impact stock market valuations? Well an increase in the debt limit also increases something called the Treasury General Account.