This morning, Senate Leader McConnell offer the Democrats two paths to resolve the current debt ceiling.
1/ An expedited reconciliation process; and
2/ Allowing Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December (my emphasis).
Option two probably isn’t that appealing, as it just extends the problem. It only covers current spending levels so they’d eventually have to use reconciliation to lift the debt ceiling to accommodate their agenda.
Still it allows the emergency measures to be unwound, and therefore likely pushes the next drop-dead date into 2022. More importantly, it shows that US politics isn’t so broken that default is a real risk.
All of which means that EDZ1 should rally from here.