On Saturday, June 3, President Joe Biden signed a bill suspending the US’s $31.4 trillion debt ceiling until January 1, 2025.
Just two days before the deadline, this timely move prevented a first-ever default on national debt, which Treasury Secretary Janet Yellen warned would cause "irreparable harm" to the US and global economies.
A default would have severe consequences, including the loss of millions of jobs, a stock market crash, and a sharp increase in interest rates on credit cards, auto loans – and, fears the housing market, mortgages. Such an unstable economy would put additional strain on households already struggling financially.
For renters, this could result in more late or missed rent payments. And as consumer and business confidence falls, investors may be more hesitant to make long-term commitments in real estate, potentially slowing the growth of rental portfolios.
With this crisis temporarily averted, the government can focus on strengthening the country’s economy.
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