Pricing U.S. Debt Ceiling Risks

The video discusses the potential impact of the US debt ceiling on market volatility, noting that while markets have been focused on trade and the Federal Reserve, the debt ceiling could introduce volatility due to political partisanship. The VIX index is analyzed, suggesting a new normal in market behavior with central banks aiming to stabilize investments. The video also covers US-China trade relations, highlighting the lack of incentive for President Trump to finalize a deal before the 2020 elections, as maintaining a tough stance on China aligns with his political strategy.

What role do central banks play in maintaining market stability according to the text?

Why might President Trump have no incentive to reach a trade deal with China at this time?