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Democrats’ Dare on Debt Sets Up High-Stakes Shutdown Fight (1)

Aug. 16, 2021, 2:40 PM

Democrats are betting Republicans will blink and agree to raise the debt ceiling before it expires, a risky wager after a weeks-long standoff that threatens the health of the financial markets and continued U.S. government operations.

Should market turmoil and a federal shutdown ensue this fall, it could overshadow Democrats’ efforts to push through President Joe Biden’s $4.1 trillion economic agenda and serve a blow to the party heading into next year’s midterm elections.

Democrats last week passed up the chance to muscle a debt-ceiling hike through the Senate on a party-line vote, opting instead to go through the ...