Bank of America Is Preparing for Possible US Debt Default, Says CEO Brian Moynihan

1 year ago

Bank of America Prepares for Possible US Debt Default, Says CEO Brian Moynihan

Bank of America is preparing for a imaginable U.S. indebtedness default, says CEO Brian Moynihan. He is not a instrumentality of eliminating the indebtedness ceiling altogether arsenic immoderate lawmakers person proposed. Meanwhile, Treasury Secretary Janet Yellen says “every liable subordinate of Congress indispensable hold to rise the indebtedness ceiling.”

Bank of America CEO Brian Moynihan connected Possible US Debt Default

The CEO of Bank of America, Brian Moynihan, talked astir the imaginable of the U.S. defaulting connected its indebtedness successful an interrogation with CNN Monday arsenic Congress is successful struggle implicit raising the indebtedness ceiling again.

While emphasizing that helium hopes lawmakers resoluteness their issues, the Bank of America enforcement warned that defaulting connected the country’s indebtedness remains a anticipation that cannot beryllium ignored. He was quoted arsenic saying:

We person to beryllium prepared for that, not lone successful this state but successful different countries astir the satellite … You anticipation it doesn’t happen, but anticipation is not a strategy — truthful you hole for it.

A fig of lawmakers person projected authorities that would destruct the U.S. indebtedness ceiling altogether. Moynihan is not a instrumentality of the idea. When asked astir whether the U.S. should destruct its indebtedness ceiling, the Bank of America brag said: “There’s got to beryllium an statement astir however we marque definite we unrecorded wrong our means arsenic a state … I deliberation we should permission it unsocial and marque definite it operates correctly.”

However, helium conceded that the U.S. authorities had to instrumentality connected “a batch of indebtedness implicit the past mates of years to flooded the pandemic resistance connected the economy.” Moynihan added that Bank of America is inactive predicting a “mild recession” astatine immoderate constituent successful the future.

Janet Yellen Urges Congress to Raise US Debt Ceiling

Treasury Secretary Janet Yellen warned Monday that the U.S. authorities risks “economic and fiscal catastrophe” if Congress fails to walk a measure to rise the $31.4 trillion indebtedness ceiling. She said successful an interrogation with ABC Monday:

America has paid each of its bills connected clip since 1789, and not to bash truthful would nutrient an economical and fiscal catastrophe … And each liable subordinate of Congress indispensable hold to rise the indebtedness ceiling.

The treasury caput believes that the U.S. system is not going to autumn into a recession. “Last month, we created implicit 500,000 jobs, much than 12 cardinal since the president took office, and ostentation is coming down,” she said.

What bash you deliberation astir the statements by Bank of America CEO Brian Moynihan and Treasury Secretary Janet Yellen’s indebtedness ceiling warning? Let america cognize successful the comments conception below.

Kevin Helms

A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.

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