How are the markets reacting to the stalled debt-ceiling negotiations? Jay Powell weighs in

Asian stocks opened lower Monday, the first reaction in major markets after congressional leaders and the Obama administration failed to reach an agreement on a deal to raise the U.S. debt limit over the weekend.

Pressure to reach a deal continues to escalate, with all three major credit rating agencies warning in the past week that they are considering a downgrade of the U.S. credit rating as a result of the continuing impasse.

Today on American Morning, Jay Powell, former Treasury Under Secretary under President George H.W. Bush, joins Christine Romans to discuss how the markets are reacting to the continued stalemate and to weigh in on whether he thinks a bill will be passed before the August 2nd deadline.