Bracewell Principal Liam Donovan discussed with Axios how turmoil in the financial markets could be a forcing mechanism to help Congress forge consensus with regards to the debt ceiling.
“In order for Congress to act expeditiously, there must be a sense of gravity around the consequences should they fail to act,” said Donovan. “At this point, conventional market wisdom is actively undermining that sort of pressure by projecting unmitigated confidence that it will all work out.”
In the past, Washington’s drama over the debt ceiling and government shutdowns have eventually worked out. But are warning signs different this time?