Investment insights from Capital Group
A US debt ceiling standoff could get ugly, but markets have historically powered through them
Sources: Capital Group, Refinitiv Datastream, Standard & Poor's, U.S. Department of the Treasury, U.S. Office of Management and Budget. Periods in which the statutory limit has been suspended are reflected by the dotted lines. These periods include February 4, 2013, through May 18, 2013; October 17, 2014, through March 31, 2017; September 30, 2017, through March 1, 2019; and August 2, 2019, through July 31, 2021. Data as of March 31, 2023. Past results are not predictive of results in future periods.
When will the US Treasury run out of money?
Sources: Capital Group, Congressional Budget Office (CBO), Office of Management and Budget (OMB), Piper Sandler. Cash balance figures reflect estimates from Piper Sandler based on debt forecasts from the CBO and OMB, respectively. Estimates assume extraordinary measures are fully deployed and that the Treasury will not allow cash balances below $25 billion. "X-dates" refer to the date on which the U.S. government will be unable to pay all its obligations. Cash balance path is smoothed. As of April 12, 2023.
US long-term debt has risen steadily over the past half century
Sources: Capital Group, National Bureau of Economic Research, U.S. Treasury Department. As of December 31, 2022.
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Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.