Breaking down the debt ceiling deal

by Jim Nussle, The Nussle Report

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.

 

continue reading »