JPMorgan Chase CEO Jamie Dimon said on Sunday that Democrats should address the debt ceiling before Republicans retake the House in January to avoid risking the “catastrophic” consequences of a default.
Dimon made the comments during an appearance on CBS’ Face the Nation, after being asked about his thoughts on the November midterms and the upcoming Congress. After telling host Margaret Brennan that he was hopeful a split Congress could still be productive, The veteran CEO was asked if he believed Democrats should try to get a debt ceiling fix passed before the session adjourned.
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“They should [find a fix now] because the catastrophic effects of an actual default — not the debates, I understand both sides: why we want it, how they want to use it — that’s catastrophic, or potentially catastrophic. I would never take that risk,” Dimon said. “So for me, yes, I’d get it done now. Take it off the table.”
Democratic leadership has prioritized passing a government funding bill before this Friday’s deadline, thus avoiding a government shutdown, in the final weeks of the lame-duck session.
The debt ceiling, or the top amount the federal government can borrow, will need to either be raised or abolished entirely sometime next year in order to avert a debt default. Economists have long warned that such a default would wreak havoc on the U.S. economy.
In the wake of Republicans winning back the House, some Democrats have been lobbying party leadership to try to find a solution on the debt ceiling issue while still in control of both chambers. Doing so would take away a negotiating weapon from House Republicans once the new Congress convenes, preventing GOP lawmakers from being able to withhold votes as a bargaining chip in exchange for Democrats accepting a series of fiscal overhauls and deep cuts to federal spending.
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While Senate Majority Leader Chuck Schumer (D-NY) said in November that he was working on finding a bipartisan fix to the debt ceiling matter during the lame-duck session, it appears less and less likely that a deal will be made before next year.
“Oh, I wish — I don’t think so,” Senate Majority Whip Dick Durbin (D-IL) told the New York Times on Friday when asked about the potential for Congress to raise the debt ceiling. “We let this issue and this challenge do everything possible to slow us down, and even to stop the business of our government, and it’s just unacceptable. If I had my way, we’d change it tomorrow.”
