JPMorgan Chase CEO Jamie Dimon on Thursday weighed in on the debt ceiling, saying it’s “not one thing we ought to be enjoying round with.”
He stated throughout a CNBC interview that folks “ought to by no means query the credit score worthiness” of the U.S. authorities and described it as “sacrosanct.”
“Now, after all Democrats are going accountable the Republicans, and Republicans are going accountable the Democrats. I don’t care who blames who,” Dimon went on to say. “Even questioning it’s the incorrect factor to do.”
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“That’s simply part of the monetary construction of the world, and this isn’t one thing we ought to be enjoying video games with in any respect,” he added relating to the debt ceiling.
The federal authorities hit its debt restrict of round $31.4 trillion on Thursday. Roughly $24.5 trillion of America’s whole public debt excellent consists of debt held by the general public, whereas about $6.9 trillion is intragovernmental holdings, in response to the newest information from the Treasury Division.
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On the identical day, Treasury Secretary Janet Yellen notified Congress in a letter of the “extraordinary measures” the division “started utilizing right this moment” to keep away from a default, calling on lawmakers to “act promptly to guard the complete religion and credit score of the US.”
There have been 78 separate situations of Congress transferring to “completely increase, briefly lengthen, or revise the definition” of the debt restrict within the final 63 years, in response to the Treasury Division. The final time it was raised was in December 2021, when lawmakers voted to take action.
Dimon beforehand mentioned the “doubtlessly catastrophe outcomes” that might happen “on the day that America can’t pay its debt” final week throughout an interview with “Mornings with Maria” host Maria Bartiromo.
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“As soon as American debt goes into default, lots of people can’t personal it anymore, and American debt doesn’t cross-default, however it’s cumulative,” he stated. “The [Treasury bill] defaults, and the following week T-bill defaults, the following week T-bill defaults, pension plans should promote.”
Kristen Altus and Megan Henney contributed to this report.