Mother’s Day is tomorrow, followed by Memorial Day, and summer. Typically, family is engaged in make haste activities during this time of transition.
Especially, the inflation is showing signs of abating. The Fed is signaling its willingness to loosen its grip on the interest rate hike. Perfect for beehives of travelers heading for the door to get a jump on the summer vacation. Business certainly is hoping the economy rebounds soon.
However, there is one political drama still unfolding, the US government debt ceiling. A topic that is too far removed for average person to do anything about it, and yet the consequence, if it happens, would affect everyone. Not only the US economy will be doomed but also the global finance system.
Simply put, the greenback is the global currency reserve. If its backer, the full faith and credit of the US government, is in default, market confidence will fall and pandemonium will sure follow. In theory, this could happen if our politicians fail to reach an agreement. Such a political drama.
Have you got summer plan? Will the debt ceiling affect your plan?