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US media reports: Republicans begin considering raising the debt ceiling again as midterm elections approach.

1 hours ago

According to Politico, U.S. Republicans raised the debt ceiling by $5 trillion last year. Now, they are already considering how to avoid falling back into a "fiscal cliff" during Trump’s term. Independent forecasting agencies project that the U.S. will reach "X Date"—the final deadline to avert a U.S. debt default—between next summer and early 2028, a period that coincides with the intensification of the presidential primary season. Two sources familiar with the matter said that to avoid high-stakes negotiations with Democrats, White House officials have privately proposed raising the U.S. debt ceiling of $41.1 trillion via a partisan spending bill that many Republicans hope to pass ahead of the November midterm elections. If Republicans lose control of either chamber of Congress in the upcoming midterms, this move could save Trump significant trouble, as Democrats will in any case demand concessions in bipartisan negotiations to prevent an unprecedented national debt default—with the total national debt currently nearing $39.7 trillion.

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The Federal Reserve held interest rates steady.

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FOMC Statement: The interest rate decision was approved by a 9-3 vote.

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Following the release of the interest rate decision, the overall crypto market rebounded, spot gold rose in the short term, and the US Dollar Index declined.

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Fed's Official Announcement: Federal Reserve holds interest rates steady in a 9-3 vote, marking the first time since 2016 that three unanimous dissenting votes were recorded.

Nick Timiraos, known as the "Fed’s mouthpiece", stated that the U.S. Federal Open Market Committee (FOMC) voted 9 to 3 to keep interest rates unchanged. Three regional Federal Reserve presidents dissented, advocating a 25 basis point rate hike. This marks the first time since 2016 that the Fed has recorded three dissenting votes all supporting a rate hike in a single monetary policy decision, reflecting growing hawkish divisions within the central bank.

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The interest rate swap market is no longer fully pricing in September interest rate hike expectations.

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