McHenry Warns Debt Ceiling Showdown Could Roil Treasuries Worse Than 2023

Former House Financial Services Chair Patrick McHenry issued a stark warning on Bloomberg's "Balance of Power," stating that another debt ceiling standoff could cause greater turmoil in the Treasury market than the 2023 fight. McHenry argued that Republicans should address the debt ceiling while they still control Congress and the White House, cautioning that Democrats could use it as leverage next year. He emphasized that failing to act now could lead to severe market disruptions. McHenry also discussed the political landscape, noting that Republicans are playing defense in the 2026 midterms as campaign money flows toward races the party deems more urgent to protect. He spoke with Kailey Leinz and Joe Mathieu about the strategic challenges facing the GOP and the need for proactive fiscal policy. The interview provided valuable insights into the intersection of politics and financial markets, highlighting how legislative decisions can have far-reaching economic consequences. McHenry's comments serve as a timely reminder of the risks associated with prolonged debt ceiling debates.