Head of the largest American bank JPMORGAN Chase Jamie Daimon warned that the possible US default due to the public debt limit would have catastrophic consequences for the country’s economy, reports Reuters.
The largest US credit institution began to think over the effects of default, if in the US Senate it is not necessary to coordinate and approve the financing of the government and increase the ceiling of the public debt. “We are doing this for the third time, because there is a potentially catastrophic event,” said Daimon.
According to him, every time the threat of default arose, it was able to prevent it. “But we should never even approach her start. I think that all this is wrong, and we must take a bipartisan bill and get rid of the ceiling of debt,” he said.
Earlier it became known that the Republicans in the US Senate blocked the draft law on the financing of the government and the increase in the ceiling of public debt, and now the Democrats will have to try to avoid the hindered threat of an economic disaster. Approve financing is necessary until October 1. If the state holder limit is not raised, the United States risks encounter a default.
Country Finance Minister Janet Yellen said that the potential default “will speed up the historical financial crisis and aggravates the damage from the coronavirus pandemic.” The economy will subjected to recession, and the United States will generally become a much weaker country.