CEO Brian Moynihan said that Bank of America is preparing for a possible US debt default. He is not a fan of eliminating the debt ceiling altogether, as some lawmakers have proposed. Meanwhile, Treasury Secretary Janet Yellen says that every responsible member of Congress must agree to raise the debt ceiling.
Brian Moynihan on possible US debt default
In a recent interview with CNN, as Congress is in conflict over raising the debt ceiling again, the CEO of Bank of America, Brian Moynihan, talked about the prospect of the US defaulting on its debt. While emphasising that he hopes lawmakers resolve their issues, the Bank of America executive warned that defaulting on the country’s debt remains a possibility that cannot be ignored.
He added that we must be prepared for this type of situation in this country and other countries around the globe. Brian also mentioned that he hopes it does not happen, but hope is not a strategy, so everyone should be prepared for it.
Several lawmakers have also proposed legislation eliminating the US debt ceiling altogether. Moynihan is not a fan of this idea however when asked whether the US should eliminate its debt ceiling, the Bank of America CEO said there’s got to be an argument about how we make sure that we live within our means as a country. He also mentioned that he thinks that they should leave it alone and make sure it operates in the right way.
On the other hand, he also conceded that the US government had to take on a lot of debt over the last few years to overcome this pandemic drag on the economy. Moynihan added that the Bank of America is still predicting a mild recession in the near future.
Janet Yellen Urges government to raise US debt ceiling
Recently, CEO Brian Moynihan warned people about the debt ceiling by stating that Bank of America is preparing for a possible US debt default. On the other hand, on Monday, Treasury Secretary Janet Yellen warned that the US government risks economic and financial catastrophe if Congress fails to pass a bill to raise the 31.4 trillion USD debt ceiling.
She also said in an interview with ABC Monday that America had paid all of its bills on time since 1789, and not to do so would produce an economic and financial catastrophe, and every responsible member of Congress should agree to raise the debt ceiling.
What are your thoughts on the statements by Bank of America CEO Brian Moynihan and Treasury Secretary Janet Yellen’s debt ceiling warnings? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.
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