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Debt ceiling and future Fed policy

The need to increase the debt ceiling has emerged as the top issue in DC.  The Congressional deadlock took on new urgency last week when Treasury Secretary Janet Yellen surprised markets and political leaders when she put out a statement that the X-date for Treasury funding may be as early as June 1.  This leaves only three weeks for Washington to find an exit strategy for the government hitting the statutory debt ceiling.

Two weeks ago House Republicans eked out a one vote victory in a...

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