Senator Chuck Schumer (D-NY) warned that the markets may react precipitously to Saturday afternoon’s failure to move a easy debt ceiling bill, and that the response could come as early as Monday morning, versus the October 17 time limit set by using Treasury Secretary Jack Lew.
“We don’t be aware of when the markets will react to this,” Schumer stated in a press conference following the vote.
“which You can’t say no faster than subsequent Thursday. I worry on Monday that when the American markets open, maybe on account of this vote, that they’ll start being concerned. Then no longer handiest will the stock market go down, however the interest rates will go up, and the value of U.S. Treasuries decline. It’s very severe. It would were a whole lot better if we had just put this aside and a one hundred-zero vote to pay our bills. That didn’t happen.”
The Senate, which took over negotiations on Saturday after twelve days’ value of stalemate with the Home GOP, a regarded as and rejected a concept by Senator Susan Collins (R-ME) to repeal the scientific instrument tax in exchange for a six month continuing resolution at sequestration ranges, and then failed to succeed in cloture for a “easy” debt ceiling elevate.
“The good news is that the assembly that Senator [Harry] Reid (D-NV) and I had with Senator [Lamar] Alexander (R-TN) and Senator [Mitch] McConnell (R-KY) give me slightly bit of lead to for optimism,” Schumer continued. “Obviously the talks are in their early stages. I consider Senator McConnell confirmed excellent will. I believe he needs to come to an answer. I consider he is aware of how serious it is to default. And my view is that it’s going to be the Senate that must come to an agreement right here, for the reason that Home Republicans appear so divided, and in such disarray. They don’t have a plan.”
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