On the latest episode of Capitol Gains, the conversation turned to President-elect Donald Trump’s stance on the federal debt ceiling. Trump has suggested eliminating the debt limit entirely—an idea that’s stirring debate within Washington and on Wall Street.
Yahoo Finance Senior Columnist Rick Newman didn’t mince words when discussing the current system. “I think the debt ceiling is just a complete joke,” Newman said, noting it has historically failed to restrain government borrowing. Instead of curbing spending, Congress simply votes to raise the ceiling, repeatedly pushing the nation toward last-minute showdowns and the threat of default. According to Newman, “that makes no sense whatsoever.”
Trump’s willingness to scrap the debt ceiling, if realized, could fundamentally change the nature of fiscal debates, shifting focus away from recurring brinkmanship to a more direct conversation about spending priorities. Still, Newman acknowledged uncertainty about how this might play out, particularly with an incoming administration set to draft its first budget. “We’re talking about a short-term spending bill. Trump is going to get to write the next budget,” Newman explained.
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To learn more, watch the full episode of Capitol Gains here.
Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.
This post was written by Langston Sessoms