SIFMA Statement On House Passage Of Debt Ceiling Legislation

SIFMA today released the following statement from President and CEO Tim Ryan in reaction to the House of Representatives passing legislation that would raise the federal debt ceiling.  

“SIFMA applauds the House for taking necessary action towards a resolution of the debt ceiling debate. SIFMA strongly encourages legislators to work together on a bipartisan basis to reach an agreement on the debt ceiling before the August 2^nddeadline. A default on U.S. debt would have an unprecedented negative impact on the financial markets and the economy as a whole. A downgrade on U.S. debt would have far-reaching implications, potentially including a likely 60-70 basis point increase in Treasury yields which would add $100 billion per year to U.S. funding costs. Default with a downgrade is a game changer, with dire consequences for the capital markets and banking systems broadly.”