Bank Of America CEO Brian Moynihan has warned that the US is preparing for a potential default on its debt. He believes that the debt ceiling cannot be abolished, as some legislators have suggested. At the same time, Treasury Secretary Janet Yellen has urged Congress to raise the debt ceiling.
Bank Of America Chief Executive On Risk of US Debt Default
Bank Of America CEO Brian Moynihan spoke about the possibility of a US debt default in an interview with CNN on Monday. He said that Congress is fighting for the raising of the debt ceiling. He added that hope shouldn’t be the only thing relied on, and that people need to be prepared for the worst.
Several legislators have proposed legislation to completely remove the US debt limit. However, Moynihan has expressed his opposition to this notion. He stated: “There needs to be a discussion about how we make sure that we live within our means as a nation. I think we should just keep it in place and make sure it works properly.”
Janet Yellen Urges Congress To Increase US Debt Ceiling
Treasury Secretary Janet Yellen warned on Monday that the US government is risking “economic and financial catastrophe” if Congress does not pass a bill to increase the debt ceiling to $31.4 trillion. She said in an interview with ABC on Monday:
The United States has paid all its dues on time since 1789. Not acting could lead to financial and economic catastrophe. And all responsible members of Congress must agree to raise the debt ceiling.
Yellen expressed her belief that the US economy will not slip into recession. She said: “Last month we created more than 500,000 jobs, more than 12 million since the president took office, and inflation is going down.”
What are your thoughts on Bank Of America CEO Brian Moynihan’s comments and Treasury Secretary Janet Yellen’s debt ceiling warning? Share your thoughts in the comments section below.
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