javascript hit counter
Business, Financial News, U.S and International Breaking News

Jamie Dimon says Congress should not play video games with the creditworthiness of the U.S. authorities

Jamie Dimon, President, CEO & Chairman of JP Morgan Chase, talking on Squawk Field on the WEF in Davos, Switzerland on Jan. 19th, 2023. 

Adam Galica | CNBC

JPMorgan Chase CEO Jamie Dimon mentioned Thursday that politicians needs to be severe in regards to the debt ceiling as Congress stays locked in a political battle to extend the U.S. borrowing restrict.

“We must always by no means query the creditworthiness of america authorities. That’s sacrosanct. It ought to by no means occur,” Dimon mentioned Thursday on CNBC’s “Squawk Field” from the World Financial Discussion board in Davos, Switzerland.

His feedback come as Congress stays in a standoff over the debt ceiling, the amount of cash the U.S. is allowed to borrow to pay its payments. Treasury Secretary Janet Yellen mentioned final week {that a} U.S. debt default would “trigger irreparable hurt to the U.S. financial system, the livelihoods of all Individuals, and international monetary stability.”

At present, Dimon mentioned, “After all Democrats will blame the Republicans and Republicans will blame the Democrats. I do not care who blames who. Even questioning it’s the fallacious factor to do. … That’s simply part of the monetary construction of the world. This isn’t one thing try to be taking part in video games with in any respect.”

The present ceiling is about $31.four trillion. Since the price of authorities operations exceeds federal tax revenues, the U.S. should elevate cash by promoting Treasury bonds, however cannot achieve this past the mandated debt ceiling.

A U.S. default would ship shock waves all through the U.S. and international economies, together with market volatility and frozen federal advantages.

On the broader financial system, Dimon mentioned inflation will probably stay stubbornly elevated, forcing the Federal Reserve to boost rates of interest larger than 5%.

— CNBC’s Greg Iacurci contributed reporting.

Correction: Treasury Secretary Janet Yellen mentioned final week {that a} U.S. debt default would “trigger irreparable hurt to the U.S. financial system, the livelihoods of all Individuals, and international monetary stability.” An earlier model mischaracterized her feedback.

This text was initially revealed by cnbc.com. Learn the authentic article right here.

Comments are closed.