By: Barry Gilbert, PhD, CFA, Asset Allocation Strategist, LPL Financial & Lawrence Gillum, CFA, Fixed Income Strategist, LPL Financial

While concerns about the debt ceiling have been increasing, markets, businesses, and the economy are likely to see only minimal impact until we are days, or maybe a few weeks, from the “x date,” the date on which the federal government will no longer be able to meet all its obligations, likely in the summer or early fall. We continue to believe the chances that Congress will fail to raise the debt ceiling before the x date remain extremely low, but current political dynamics have likely increased the risk and there are some negative consequences to even an eleventh hour agreement, as we saw in 2011.

Read the full commentary here: weekly-market-commentary-02.27.2023