Posted on

Jamie Dimon warns panic will overtake markets as U.S. approaches debt default



Share

JPMorgan Chase and Company President and CEO Jamie Dimon testifies before a Senate Banking, Housing, and Urban Affairs hearing on “Annual Oversight of the Nation’s Largest Banks”, on Capitol Hill in Washington, U.S., September 22, 2022. Elizabeth Frantz | ReutersJPMorgan Chase CEO Jamie Dimon said Thursday that markets will be gripped by panic as the U.S. approaches a possible default on its sovereign debt.An actual default would be “potentially catastrophic” for the country, Dimon told Bloomberg in a televised interview. Dimon said he expects that worst-case scenario will be avoided, however, because lawmakers will be forced to respond to growing concern.”The closer you get to it, you will have panic” in the form of stock market volatility and upheaval in Treasurys, he said.Dimon joined a host of business figures and administration officials making dire predictions about the consequences of failing to raise or suspend the U.S. debt limit and allowing the world’s largest economy to default on its bonds. Treasury Secretary Janet Yellen has said the idea that the country could default should be “unthinkable” and would lead to economic disaster.”If it gets to that panic point, people have to react, we’ve seen that before,” Dimon said.But “it’s a really bad idea, because panic becomes som …

Read More