The US debt ceiling is reaching a critical point, according to recent reports, and the Wall Street Journal sees a “copper glow up” in the near future. The debt ceiling, or rather the legal limit Congress has placed on the total debt the US can have at any given time, was set at $22 trillion in February 2019. According to reports, the debt level is now very close to that limit, and lawmakers have not yet been able to make a deal to increase it. This could have major implications for the US economy and the markets.
The US government’s current legal debt limit of $22 trillion is the highest it has ever been, and it only took nine months to reach it. This is especially concerning, given that this year Congress has already passed two large spending bills which totaled more than $3 trillion. This means that the US has added over $3 trillion to its debt in only a few short months. Now, with the government quickly approaching the legal debt ceiling, it is becoming increasingly necessary for Congress to pass legislation that will either increase the debt limit or provide a way for the government to continue operating during the fiscal impasse.
So far, lawmakers have been unable to negotiate a deal. On the one hand, some Republicans want to reduce government spending and balance the budget, while Democrats want to raise the debt ceiling and pass more spending bills. This has resulted in a stalemate, with no sign of an agreement in sight.
However, despite the stalemate, the Wall Street Journal sees a “copper glow up” in the near future. The outlet believes that Congress will have to come to an agreement eventually, and that when they do, the US economy will benefit. It argues that an increase in the debt ceiling will give the US government the financial flexibility to pursue much-needed infrastructure projects and other policies that will help the economy grow.
Furthermore, the Journal believes that this “copper glow up” will be good for the stock market. According to the outlet, investors should be anticipating an influx of funds if Congress is able to strike a deal, which would then result in increased economic activity. This could, in turn, drive stock prices higher, especially for companies that benefit from increased government spending.
The Wall Street Journal’s outlook reflects the reality that despite the current impasse, a solution is likely to be found eventually. The debt ceiling has been increased numerous times in the past, and Congress will have to pass a bill eventually. When they do, the US economy is likely to benefit, and the stock market could potentially see a surge in activity. While the outcome of the current dispute is uncertain, the Journal’s outlook reflects the potential of an eventual deal and the corresponding economic benefits.
