The drawn-out process in raising the US debt ceiling poses “significant” risks to the country’s financial system and economy, the Federal Reserve said Wednesday in published minutes from its February policy meeting that added to experts voicing fears of a historic debt default.
“A number of participants stressed that a drawn-out period of negotiations to raise the federal debt limit could pose significant risks to the financial system and the broader economy,” the minutes said. “In subsequent months, uncertainties associated with the debt limit could also be important.
