House Debt-Limit Vote Sets Stage for Showdown

The House of Representatives planned to vote today on a debt-limit increase proposal that confronts unified Democratic opposition in the Senate, setting the stage for a congressional showdown to avert a U.S. default.

House Speaker John Boehner of Ohio gained support among fellow Republicans for his plan to raise the debt ceiling after reworking the legislation to cut $917 billion over 10 years, more than his original approach. All 51 Senate Democrats and two independents signed a letter yesterday pledging to oppose the measure.

As congressional leaders continued to wrangle with less than a week before a potential U.S. default on Aug. 2, stock markets showed jitters. The Standard & Poor’s 500 Index fell 2 percent yesterday, the biggest drop in almost two months, and the cost of insuring against a U.S. default climbed to the highest level since February 2010.

Bloomberg

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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