Invesco Chief Global Market Strategist, Kristina Hooper, says the issue of the US debt ceiling, or X Date as it’s also known, is dragging down market and consumer sentiment. If the debt ceiling isn’t raised, it will put the US government between a rock and a hard place, when it comes to payment prioritization.

Oh, absolutely. If we were to see any kind of non payment or prioritization, that would be very problematic for markets. Now, on the other hand, if we were to see a prioritization of of debt service at the expense of social security payments, that would be a big hit to the economy and they're between a rock and a hard place and that's why it's so critical to lift that debt ceiling.

Hooper said that while consumer sentiment is low as a result of the debt ceiling and mini-banking crisis, she believes the Fed will be able to pull off a bumpy landing.

That with the fed aggressively tightening, I mean, if we think about 500 basis points in about 14 months, something could break especially since this was a Asynchrony um uh tightening cycle with other major central banks doing the same thing and that's why I think there's more apprehension when you see the regional bank mini crisis. It is, you know, the question keeps being asked, what's the next shoe to drop? What's the next shoe to drop? I actually think the US economy right now is fairly resilient. We have a very strong labor market. I do believe there is a path for a bumpy landing. Um, but not any kind of major recession.