Hardened edges are fueling fears of a crash in markets

Frankfurt America has no time. The world’s largest economy has just days left to stave off a global crisis. A deal between Democratic President Joe Biden and Republicans is still pending in the bitter US debt dispute. According to Treasury Secretary Janet Yellen’s projections, the US government has been at risk of default since early June. If this happens, confidence in the creditworthiness of the world’s largest economy will be shaken. Top bankers and politicians are warning of a global financial crisis.

Both sides have repeatedly insisted that this situation should be avoided. But on Tuesday, another round of talks ended without any compromise. There are already distortions in the markets, and even though the parties have yet to come to an agreement, experts warn of violent swings.

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