Securities and Exchange Commission Chair Gary Gensler on Wednesday warned that a failure by Democrats and Republicans in Washington to reach a deal on raising the U.S. debt ceiling would impact trading, the ability of businesses to raise money, and investors. Gensler, a Democrat who was appointed by President Joe Biden, said the standoff has already affected short-dated U.S. Treasury bills, Bloomberg News reported. “If the U.S. Treasury as an issuer were actually to default, it would have very significant, hard-to-predict, and likely lasting effects on investors, issuers and markets alike,” Gensler said in prepared remarks for a conference hosted by the International Swaps and Derivatives Association in Chicago. “It would make the Cyclone Roller Coaster at the 1933 Chicago World’s Fair look like a kiddie ride.” Republican congressional leaders and the White House remain in protracted negotiations over possible budget cuts as part of a deal to raise the debt ceiling before June 1. That’s the date on which Treasury Secretary Janet Yellen has warned the U.S. risks breaching its ability to pay its outstanding obligations. Officials are expected to meet again on Friday to try to come to a solution.
