Breaking down the debt ceiling deal

Congress passed a bill to raise the federal debt ceiling and avert economic disaster. President Biden is expected to sign the bill shortly.

CUNA’s analysis conclusively shows that a default on U.S. debt by failing to raise the debt ceiling would drive us into a recession, while also leading to:

• Significant disruption of the financial markets.
• Substantial increase in the cost of borrowing.
• Rapid growth in job losses and unemployment.

All of this would result in dramatic drops in consumer, investor, and business confidence—creating a situation that would negatively affect credit unions and the people we serve.

 

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