US Debt Ceiling Standoff

Dated events

1. Aug. 2, 2011 · Budget Control Act signed, raising the debt ceiling hours before deadline
   Congress passed the Budget Control Act and President Obama signed it hours before the US would have run out of money to pay its bills. Investors had worried for weeks that the government might default on its debts. Even so, stocks fell sharply that day and in the following days, and on August 5 S&P cut the US credit rating for the first time.
2. Oct. 16, 2013 · Congress passes deal ending 16-day shutdown and suspending debt ceiling
   Congress ended a 16-day shutdown and suspended the debt ceiling until February 2014 after a standoff between Democrats and Republicans. During the standoff, investors feared the US might not pay its obligations, pushing up interest rates on short-term government bonds and weighing on stock prices. Once the deal was done, markets stabilized as the default risk evaporated.
3. Oct. 28, 2015 · House passes budget deal suspending debt ceiling through March 2017
   The House passed a budget deal that suspended the debt ceiling for about 16 months, and the Senate followed two days later, removing the threat of a near-term default crisis. In the weeks before, Treasury bond yields had moved erratically as traders worried about whether a deal would happen. The suspension removed this uncertainty and allowed markets to focus on other concerns.
4. Oct. 7, 2021 · Senate passes short-term debt ceiling rise after 11 Republicans allow vote
   After weeks of political standoff, 11 Senate Republicans let a short-term debt ceiling increase come to a vote, and Democrats passed it without Republican votes. The Treasury had warned it would run out of cash around October 18, causing short-term government bond prices to become volatile. The increase only lasted until early December, so the crisis was postponed rather than ended.
5. June 3, 2023 · Biden signs Fiscal Responsibility Act, suspending the debt ceiling
   President Biden signed legislation raising the debt ceiling after intense negotiations, just days before the Treasury would have exhausted its borrowing authority. In the preceding weeks, Treasury bond yields had moved sharply as investors priced in the risk that the US might not pay its debts on time. After the deal was signed, bond prices recovered and stock prices rose as the default threat disappeared.

Assets named in this scenario · 4

Gold · Gold FuturesiShares 20+ Year Treasury Bond ETFSPDR S&P 500 ETF TrustUS Dollar (USD)