The slim-but-growing possibility of a fiscal crisis if Congress doesn’t act on the debt ceiling is getting increasing attention from U.S. investors and is filtering into certain asset prices, though few believe the nation will ultimately default.
Warnings have been rung from policymakers to Wall Street bankers of the risk that talks go down to the wire. Jamie Dimon, chief executive of JPMorgan Chase & Co, said the bank is preparing for what could be a “potentially catastrophic event,” while New York Federal Reserve Bank President John Williams warned of potential negative market reaction if no solution is found to the debt-ceiling issue.
