JPMorgan Chase CEO Says US Default on Outstanding Debt Could Be ‘Potential Catastrophic Event’

By  //  September 28, 2021

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ABOVE VIDEO: JPMorgan Chase CEO Jamie Dimon, in a wide-ranging interview with FOX Business’ Maria Bartiromo, discusses the new Fargo branch and the economy.

(FOX BUSINESS) – JPMorgan Chase CEO Jamie Dimon warned Tuesday that a U.S. default on outstanding debt obligations would have devastating consequences for the economy.

JPMorgan Chase has begun running scenarios forecasting the effects of a default if lawmakers fail to suspend the borrowing cap before a looming deadline. Dimon told Reuters a default would be a “potentially catastrophic event,” adding that Congress should eventually vote to eliminate the debt ceiling altogether.

“Every single time this comes up, it gets fixed, but we should never even get this close. I just think this whole thing is mistaken, and one day we should just have a bipartisan bill and get rid of the debt ceiling. It’s all politics,” Dimon said in the interview.

While debt-ceiling hikes are typically routine business on Capitol Hill, talks between Republicans and Democrats on suspending the limit broke down in recent days amid disagreements over President Biden’s legislative agenda. Treasury Secretary Janet Yellen said U.S. cash reserves would run out by Oct. 18.