US debt limit has seen 78 changes since 1960. This time is likely no different, says Bank of America's wealth management team

• Lawmakers will ultimately reach an agreement preventing the US from defaulting on its debt, according to Merrill strategists. 
• The debt ceiling has been changed 78 times since 1960 despite political deadlocks, and this time is "likely no different", they said. 
• "Many past instances of debt limit standoffs have been resolved without significant market fallout," they said. 

The US debt ceiling has been altered 78 times since 1960 despite political standoffs, and that suggests lawmakers will eventually knock together a solution despite a current deadlock, according to Bank of America's wealth management division. 

"Ultimately, it's our view that an agreement will be reached preventing the U.S. from defaulting on its obligations. Many past instances of debt limit standoffs have been resolved without significant market fallout," Merrill strategists wrote in a note. 

"Since 1960, 78 times over, Congress acted to either raise, temporarily extend, or revise the debt limit, with this time likely no different," they added. 

There's growing worry that the US could default on its debt thanks to a fast-approaching deadline. Lawmakers have been sparring over whether to raise the debt limit or not, with House Speaker Kevin McCarthy proposing a bill last week that would raise the borrowing limit by $1.5 trillion while cutting spending by $4.5 trillion. 

Meanwhile, Treasury Secretary Janet Yellen has warned of "an economic and financial catastrophe" should the US fail to pay its debt obligations - with potential mass unemployment and payment failures - and urged politicians to raise the ceiling and not wait "until the last minute" to do so. 

"Any uncertainty about the timing and outcome of the resolution adds to a volatile backdrop already in the throes of an earnings reset and growth slowdown," the chief investment office at Merrill said.

In the meantime, the US Treasury has implemented "extraordinary" measures to sidestep an immediate fiscal crisis. Those measures will likely only last for a few more months, the Congressional Budget Office previously projected, and the US could default as soon as this summer if policymakers don't take action.