Geithner Confident a Deal will be Struck

US Treasury Secretary Timothy Geithner has said he is confident the White House and Congress will agree a deal to raise the US debt ceiling.

He said it was “unthinkable” the US would not meet its obligations on time.

Mr Geithner’s comments to CNN come after talks between President Barack Obama and Congressional leaders on Saturday failed to make a breakthrough.

The US risks default on its $14.3tn (£8.7tn) debt without a deal to raise the borrowing limit before 2 August.

At this point the US Treasury could run out of money to pay all of its bills – which could lead to interest rate rises, threaten the US economic recovery and in turn the global recovery.

The sticking point is the issue of taxation.

BBC News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell