If Congress fails to raise the debt limit by Oct. 17, could President Barack Obama step in and raise the ceiling by executive action?
Greg Valliere, chief political strategist for Potomac Research Group, says Obama would do so, if faced with the prospect of a certain default on paying the nation’s creditors.
“I am not flat out saying that [executive fiat] is the end game, but it has to be on the table if a default looks imminent,” Valliere said in an interview with MarketWatch.
During the last debt ceiling showdown in the summer of 2011, there were scholars and senators who suggested Obama did have such a silver bullet — the 14th Amendment to the Constitution.
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.