Debt Ceiling Update and Happy Memorial Day!

In light of the recent debt ceiling agreement on Saturday night, we are sending you a quick update. We also hope you are enjoying this Memorial Day as we remember and support our soldiers and their families who have sacrificed so much for us. 

“We do not know one promise these men made, one pledge they gave, one word they spoke; but we do know they summed up and perfected, by one supreme act, the highest virtues of men and citizens. For love of country, they accepted death, and thus resolved all doubts, and made immortal their patriotism and their virtue.”

James A. Garfield, May 30, 1868, Arlington National Cemetery

President Joe Biden and House Speaker Kevin McCarthy have reportedly reached an agreement on the debt ceiling debate Saturday night. They must now get the deal through lawmakers from both parties. Below are key points on the deal thus far as reported by Bloomberg:

A couple notable items are left out of the deal including closing tax loopholes and cutting student debt relief. The market’s reaction to the deal will consider several factors. Many believe new issuance from the treasury will drain additional liquidity from the financial system. This decrease in liquidity is something our team has been working on to better understand the implications.