U.S. stocks rose amid signs lawmakers could reach a deal before the government loses its ability to borrow money in three days. Policy makers from Japan, India, Russia and Saudi Arabia expressed faith in the ability of the U.S. to pay its bills as the potential for default dominated the annual meetings of the International Monetary Fund and World Bank, which ended yesterday in Washington. Washington’s wrangling over a partial government shutdown and lifting the U.S.’s borrowing limit has strategists cutting their forecasts for the dollar for a third straight month, the longest stretch this year. With a lapse in U.S. borrowing authority now just three days away, a deal which averts a default and restores full government operations continues to elude politicians. That may encourage the Federal Reserve to keep printing dollars to inject cash into the financial system by buying bonds. If Congress does nothing, the federal government will run out of borrowing authority and start missing payments sometime between Oct. 22 and Oct. 31, according to the Congressional Budget Office.
Posted on: Tue, 15 Oct 2013 08:23:56 +0000
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