Models suggest US debt ceiling could be breached as early as mid-July

The Bipartisan Policy Center said a model released on Monday shows the US could breach its debt ceiling sometime between mid-July and October if Congress fails to act. The agency also said that although highly unlikely, the possibility of the so-called ‘X-Day’ coming in early June is elevated if tax revenues this year fall short of expectations. The U.S. Treasury Department has not yet predicted the date on which X-Day will occur, that is, the federal government does not have the power to exercise payment functions. Wall Street estimates that ‘X-Day’ will come as early as the end of May (BNP Paribas estimates), and may occur as late as the end of August or the third quarter (Bank of America, Barclays, TD Securities and other institutions forecast).