Middle Georgia businesses could face financial strain amid looming debt ceiling deadline, warns local expert
With the U.S. Congress racing against the clock to agree on debt ceiling legislation before the June 1 deadline, Middle Georgia could face an economic fallout, according to a local expert.
MILLEDGEVILLE, Georgia (41NBC/WMGT) — With the U.S. Congress racing against the clock to agree on debt ceiling legislation before the June 1 deadline, Middle Georgia could face an economic fallout, according to a local expert.
Cullen Wallace, an Economics Assistant Professor at Georgia College and State University, explained the possible consequences.
“So, if you didn’t know what price you had to get a loan for capital improvement, or to make investments in your business, or to take out a mortgage, all those things would instantly become more expensive,” he said.
As the deadline looms, Democrats and Republicans in Congress remain at a stalemate over government spending decisions. Should they fail to reach an agreement by June 1, it could spell financial trouble not only for Middle Georgia, but also for the entire nation.
U.S. Treasury Secretary Janet Yellen has cautioned the country will exhaust its capacity to repay debt already incurred by the federal government on June 1.
