Bloomberg Surveillance · Thursday, September 10, 2026
Libby Cantrell of PIMCO suggests the debt ceiling debate could paradoxically lead to more spending, particularly on non-defense discretionary items. If Democrats regain control of the House, they will likely demand concessions, which could include increased non-defense spending to match any approved defense spending increases.
“And I do think that will look like more spending. So not necessarily, you know, Trump dividends, but it will look like more non-defense discretionary spending. That's only because President Trump is likely to push for more defense spending.”
“So I think bottom line here is, ironically, the debt ceiling could lead to more spending. Don't you love this, Lisa?”