The US government has been in “shutdown” entering the 16th day, as the policitical stalemate continues. However late on Tuesday, it seems that an agreement had been made and the looming debt default will be avoided.
Congress released an article on the 25th September that the US government would have exhausted their available cash, leaving approximately $30 billion as of roughly the 17th October. The CBO also stated that the government would be completely out of cash between the 22nd October and the end of the month.
For the full COB release (Federal Debt and the Statutory Limit, September 2013)
The impending date of the 17th October nears, investors have become more concerned that a default could actually occur.
Unsuprisingly on Tuesday evening, credit ratings agency Fitch placed the US’s AAA credit rating on negative watch.
“reflects the urgency with which Congress should act to remove the threat of default hanging over the economy”
Full Fitch press release of the AAA negative warning
It is reported that the opposing US parties have come to an agreement and a US default will be avoided, with Gold falling the first time in 3 days.