While politicians continue to debate raising the country’s debt ceiling to avoid a default from as early as June 1, markets will likely react to the uncertainty with volatility in the coming weeks. The debt ceiling, currently at USD 13.4 trillion, has historically been raised to avoid a default. However, the current political impasse in the US government suggests a remote possibility that the government will fail to fulfill its debt obligations. This would catalyze credit agencies to downgrade US debt and spur a likely recession. The government raising the debt ceiling remains the likeliest scenario, suggesting any reactionary stock decline will be temporary.