Weekly Wrap: A U.S. credit downgrade

A Wall Street sign in New York City's financial district.

Jeremy Hobson talks with Leigh Gallagher of Fortune Magazine and Sudeep Reddy of the Wall Street Journal.

On the possibility of a debt deal:

Sudeep Reddy: Well there are some signs that we're moving toward a deal by perhaps the end of the weekend or early in the week. This entire game of chicken was designed to go until the 11th hour and to really come together at the last minute, otherwise you don't have leverage on either side of this. But even if we do get a deal, it's pretty clear that it's not going to be big enough to prevent a downgrade in the U.S. credit rating.

Leigh Gallagher: In addition to the credit rating risk, the big picture here: if the debt ceiling goes up, spending is going down. No matter what happens, it's been made abundantly clear. And as you alluded to earlier in the show, this is the absolute worst time for this to be happening.

For the rest of the analysis, click on "Listen to the story" at the top of the page.

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