Policymakers worldwide oscillated between hope and confidence yesterday that US lawmakers will break a debt impasse that threatens to trigger a default and upend global financial markets.
Asia, which holds close to US$3 trillion in US government debt, has a powerful vested interest in Washington finding a workable compromise.
Policymakers and economists expected lawmakers would strike a last-minute deal to avert a crisis.
Asian sources said finding a solution was primarily a matter of mustering political will rather than securing rescue funding, which can be far more complicated, as Greece's crisis has shown.
“They will definitely reach a compromise,” said Xia Bin, an academic adviser to the People's Bank of China. “Don't worry too much about it.”
China is the largest foreign owner of US government debt, with US$1.16 trillion as of May, so a vote of confidence from Beijing carries significant weight.
Asia, which holds close to US$3 trillion in US government debt, has a powerful vested interest in Washington finding a workable compromise.
Policymakers and economists expected lawmakers would strike a last-minute deal to avert a crisis.
Asian sources said finding a solution was primarily a matter of mustering political will rather than securing rescue funding, which can be far more complicated, as Greece's crisis has shown.
“They will definitely reach a compromise,” said Xia Bin, an academic adviser to the People's Bank of China. “Don't worry too much about it.”
China is the largest foreign owner of US government debt, with US$1.16 trillion as of May, so a vote of confidence from Beijing carries significant weight.
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