JPMorgan CEO Warns of Economic ‘Pain’ and Turbulence ‘That Will Scare People’

Before a deal is reached to raise the debt ceiling, Americans will experience economic” pain ,” according to JPMorgan CEO Jamie Dimon, and businesses will begin to experience frightful turbulence.

In an interview with CNN on Thursday, Dimon made the remarks, saying that within a few months, Democrats and Republicans will come to an agreement to raise the debt ceiling above the current$ 34. 4 trillion — but not before Americans experience some financial hardship.

Dimon said,” You’ll’ll feel the pain before it happens ,” alluding to the time when the Treasury Department’s’s collection of” extraordinary measures” for continuing to pay off the debts owed by the U.S. government will run out.

The Treasury’s’s” great measures” to keep the government funded will expire somewhere between July and September, according to various analyses, including a project from the Congressional Budget Office, unless Congress lifts the cover.

Dimon predicted that anxious investors would take markets on a wild ride as the scene of possible definition drew near.

The majority of people in Washington understand how serious the debt ceiling conflict is and” they want to get it to a quality ,” Dimon said, adding that” You’ll’ll see it in the markets and that will frighten men.”

Democrats and Republicans, however, continue to be at a standstill in the debt cap until there is some sort of find and the danger of default disappears.

Investors: McCarthy:” Do Become Concerned”

Dimon’s’s caution regarding the possibility of sharp market gyrations in advance of a potential deft default echo remarks made by House Speaker Kevin McCarthy( R-California ) the day before.

People” should be bothered” about the standoff in Washington over raising the debt ceiling, according to the Republican senator, as the nation approaches a potential default and President Joe Biden refuses to negotiate spending reductions in exchange for the GOP’s’s agreement to lift the cover.

McCarthy said he was” very concerned” about the impending default in a Wednesday interview with Bloomberg TV,” Unfortunately, I tried to sit down with the president and the President doesn’t want to communicate.”

McCarthy suggested that there might be” some information” regarding the deficit-reduction proposal that Republicans have been working on when Congress returns from inlet later this month.

McCarthy responded that Wall Street is right to be concerned when asked if he intends to discuss the GOP plan with investors in the interim to comfort markets.

They should be worried, McCarthy said, adding that Biden hasn’t wanted to meet with him and that their most recent correspondence has been limited to characters.

Trade Jabs McCarthy and Biden

McCarthy forewarned the leader in his letter that Biden’s’s unwillingness to communicate spending reductions in order to win GOP support for raising the debt ceiling” could prevent America from meeting its oblivion.”