Debt ceiling deadlock looms over financial markets and political negotiations.

The partisan standoff over the debt limit between President Biden and Republican leaders in Congress sets the stage for severe turbulence in the financial markets, experts warn. If an agreement doesn’t come together in the next month, congressional leaders will have to agree to a short-term extension of the debt limit to give themselves more time to negotiate. Without a short-term agreement, the US would go past the so-called “X-date” and face major turmoil in the markets. Financial markets are already starting to show signs of stress related to the impasse over the debt ceiling.