JPMorgan’s Dimon says debt ceiling standoff could cause panic – report
4:46 pm Wednesday, May 10th, 2023
NEW YORK (Reuters) – JPMorgan Chase & Co’s CEO Jamie Dimon said the congressional standoff over the U.S. debt ceiling, and a potential U.S. default, could create a financial panic, according to an interview with Punchbowl News published on Wednesday.
“Panic isn’t necessarily a rational thing,” the website quoted Dimon as saying. “People panic. And (when) you see people panic — that’s ’08, ’09 again, and that’s really what you want to avoid.”
JPMorgan declined to comment beyond the interview.
“There’s a higher chance of a mistake here because of the politics of the situation” with damaging economic consequences, Dimon said. “I hope, one day, we get rid of it,” he said, restating a call to scrap the debt limit permanently.
The so-called “X-date” – when the government runs short of cash to pay its obligations – could come as early as June 1.
(Reporting by Tatiana Bautzer; Editing by Lananh Nguyen; Editing by Sandra Maler)
