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2026-11-04 18:00:25
[US Debt Deadlines Approaching Following Democratic Victory, Risk of Fiscal Impasse Rises] ⑴ Following the Democratic election victory, Wall Street has begun preparing for the next debt crisis, with Goldman Sachs warning of two approaching deadlines. ⑵ Government funding expires on December 11, potentially triggering a new round of shutdown disputes that could extend into February. ⑶ A bigger problem is that the US could reach its $41.1 trillion debt ceiling as early as the first quarter, and all emergency measures from the US Treasury are expected to run out by October 2027. ⑷ This gives Democrats considerable leverage over Trump's spending agenda, tariffs, and healthcare policies, while Washington continues to run a massive deficit. ⑸ Neither party can afford a prolonged standoff, but both have a strong incentive to use these deadlines to gain concessions. ⑹ UBS also warns that the resulting negotiations could trigger sharp market volatility. ⑺ The election changed control of Congress but did not reduce deficit spending; deficit spending will continue regardless of how the situation evolves.
