A debt ceiling clash with the economy hanging in the balance

04/26/23 • 29 min

This week on What's at Stake, Bryan DeAngelis hosts Penta Partner Meghan Pennington and Managing Director Ylan Mui to dissect the looming battle over the U.S. debt ceiling. With an uncertain "X date" approaching, and President Biden, House Speaker Kevin McCarthy, and the "five families" of the Republican caucus at odds, the stakes are getting higher every day. The group navigates the murky waters of debt ceiling negotiations in Congress and discusses whether the divides within the Republican caucus might play into Biden's hands. They also delve into the market's reaction to the looming crisis and explore how companies can engage with policymakers to move things forward in Washington.

As the tension mounts, they ask the key questions: What's the backup plan if McCarthy's strategy fails? Will Democrats budge on their demand for a "clean" debt ceiling hike?" And how can companies position themselves ahead of the inevitable appropriations debate later this year? Tune in now to stay ahead of the game

Previous Episode

Macrocast: Will they take us over the cliff?

The topic: the debt ceiling. On this edition of the Macrocast, our host Ylan Mui is joined by John Fagan and Brendan Walsh of Markets Policy Partners, as well as Zach Moller, Director of Third Way's Economic Program. The group delves into the looming debt ceiling, analyzing the political landscape, and predicting how the markets will react. From a hard-to-pin-down X date–the day on which the federal government is no longer able to meet its fiscal obligations–to "break glass strategies," the group draws on its decades of experience observing Congress, the Treasury, and markets to offer their predictions on how McCarthy's majority and the Biden administration will navigate the impending debt ceiling negotiations.

Next Episode

Macrocast: Slouching towards a recession

This week on the Macrocast, Ylan Mui, Brendan Walsh, and John Fagan sit down with John Dick, CEO and Founder of Civic Science, to dive into the latest economic sentiment index from Penta and Civic Science. The group also explores what the new GDP and PCE figures mean for consumers and the broader economic outlook. Recession fears are rising, but will the Fed tap the breaks or carry out another rate hike? And how do markets' fears of debt ceiling chaos play into the outlook? Tune in to find out.