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 & PoorÃ¢â‚¬â„¢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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.