US debt ceiling debacle adds to economists’ fears of turmoil

Economists are becoming increasingly concerned that the US will generate fresh turbulence in the coming weeks when it hits its debt ceiling and is unable to pay all its bills. 

With the two main political parties unable to agree an increase in the $31.4tn ceiling on US federal debt, Janet Yellen, Treasury secretary, has warned that stop-gap measures to circumvent the limit will run out of road as soon as June 1. 

At that point, the US…