Quick Take
The U.S. House of Representatives passed the Debt Ceiling Bill on June 1.
This provision will enable the U.S. government to continue spending indefinitely until January 2025. The total federal debt is projected to increase to $36 trillion from $31 trillion, per The Kobessi Letter.
In the short term, cryptocurrencies may encounter sell-side pressure due to monetary contraction resulting from a potential increase in t-bill issuance. However, the long-term outlook is bullish as markets will experience unlimited spending.
Member of the Federal Reserve Board of Governors Philip Jefferson has called for a temporary pause in rate hikes to allow time for data assessment. This “skip” in rate adjustments would come at the next FOMC meeting scheduled to conclude on June 3.
Employment data is set for release later today, potentially bolstering support for a rate pause.
The current probability of a pause is 77%.
Probabilities: (Source: CME)
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