RealClear Markets Editor John Tamny discusses whether Biden and Republicans can reach a debt ceiling deal on Cavuto: Coast to Coast.
Jamie Dimon, CEO of JPMorgan Chase, commented on the debt ceiling on Thursday, saying it’s “not something for us to mess around with.”
He said during a CNBC interview that people should “never question the creditworthiness” of the US government, calling it “sacrosanct.”
“Now, of course, the Democrats will blame the Republicans, and the Republicans will blame the Democrats. I don’t care who blames whom,” Dimon continued. “It’s even wrong to question it.”
JPMORGAN’S JAMIE DIMON IS MORE OPTIMISTIC ABOUT US CONSUMERS
“It’s just part of the financial structure of the world and we shouldn’t play with it at all,” he added, referring to the debt ceiling.
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase, speaks during the annual membership meeting of the Institute of International Finance October 13, 2022 in Washington. (Ting Shen / Bloomberg via Getty Images / AP Newsroom)
The federal government hit its debt limit of around $31.4 trillion on Thursday. About $24.5 trillion of America’s total outstanding federal debt consists of debt held by the public, while about $6.9 trillion consists of interstate stocks, according to the latest Treasury Department data.
US REACHES DEBT CEILING, THREATENING ECONOMIC OUTLOOK
On the same day, Treasury Secretary Janet Yellen wrote to Congress informing Congress of the “extraordinary measures” the department “began to apply today” to avoid a default and urged lawmakers to “act immediately to ensure full confidence.” and to protect the creditworthiness of the United States.”
According to the Treasury Department, there have been 78 separate instances of Congress over the past 63 years to “permanently raise, temporarily extend, or revise” the debt limit. The last time it was levied was in December 2021, when lawmakers voted for it.
Dimon previously spoke in an interview with Mornings with Maria host Maria Bartiromo about the “potentially catastrophic consequences” that could “ensue on the day America fails to pay its debt.”
Jamie Dimon, CEO of JPMorgan Chase, looks on during the inauguration of JPMorgan Bank’s new French headquarters on June 29, 2021 in Paris. (AP Photo / Michel Euler / Pool / AP Newsroom)
Jamie Dimon (Al Drago/Bloomberg via Getty Images/File/Getty Images)
Jamie Dimon sounds alarm over rising US debt with ‘possibly catastrophic consequences’
“Once American debt defaults, many people can no longer own it, and American debt does not default, but it is cumulative,” he said. “The [Treasury bill] Defaults, and next week defaults of T-bills, next week defaults of T-bills, pension plans need to be sold.”
Kristen Altus and Megan Henney contributed to this report.