What will happen if US lawmakers fail to solve the debt ceiling row?

As the outlook for the economy darkens, the wrangling over increasing the $31.4 trillion statutory limit could roil markets further

Treasury Secretary Janet Yellen suggested that the so-called X-date, after which the US might exhaust its options to fund itself, could come as early as June 1. Picture: Getty

As the regional bank turmoil continues and markets digest the Federal Reserve’s latest rate hike, investors and executives are turning to the next big question: What if lawmakers fail to resolve the stand-off around the US debt ceiling?

That scenario — though considered unlikely by many — is attracting attention as the outlook for the economy darkens. With ongoing pressures on smaller lenders, slowing growth and rising financing costs, the wrangling over increasing the $31.4 ...