via CEO JPMorgan JPMorgan, Jamie Dimonexpressed his opinion regarding the question of congressional debate on raising the debt limit, to avoid possible default in the United States, in an interview with the website Punchbowl news.
Also Read: JPMorgan Opens Blockchain Innovation Lab in Greece
Where stated Dimonwhich focuses on American politics, that he favors canceling the debt limit, and warned of the effects of the drama surrounding congressional discussions to negotiate, regarding the increase of the debt limit, where he said:
“I hope we can avoid it, and I hope one day we can get rid of it.”
The CEO also stated that approaching default is dangerous for the US and global economy, as it raises doubts about the ability of the US government to fulfill its debts, saying:
“It’s bad to have a pre-default period, because that can call into question the US debt ratings, we are the foundation of the world’s economy.”
The political element and potential panic
may not be considered Dimonwho took over the presidency JPMorgan JPMorgan Since 2005, an outsider to the political side of the debate, as he also lived through the 2008 economic crisis, he believes that this can lead to wrong decisions, even though Congress is trying to reach an agreement on the subject. He said:
“I think there is a higher chance of something going wrong here because of the policies that are in place.”
He concluded by saying that this situation may cause panic, and that panic can lead to irrationality, creating unwanted turmoil in the US and world markets:
“This can cause panic, and I have seen that panic is not necessarily rational, and this is really what we want to avoid.”
Also read: “Bank of America” partners with “JP Morgan” and “Wells Fargo” to launch a digital wallet
The Treasury Secretary Janet YellenIt had warned on May 1 that the US government might default in June, without congressional intervention.