Former House Chair Warns Debt Ceiling Fight Could Worsen Treasury Turmoil
· Business · Bloomberg, CNBC
Patrick McHenry, former House Financial Services Chair, said Republicans should address the debt ceiling while they control Congress and the White House to prevent Democrats from using it as leverage next year. He warned that another debt ceiling standoff could cause greater Treasury-market turmoil than the 2023 fight. McHenry made the remarks on Bloomberg's 'Balance of Power' podcast with Kailey Leinz and Joe Mathieu. The comments come as Republicans shift campaign money toward races they consider more urgent to protect in the 2026 midterms.
Why it matters
Investors in US Treasury markets could face heightened volatility if a debt ceiling standoff occurs, potentially increasing borrowing costs. The warning highlights the risk of political brinkmanship disrupting financial stability ahead of the 2026 elections.
Read the original report — Bloomberg
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