Jamie Dimon, chairman of JPMorgan Chase, known as the "Emperor of Wall Street," stated on the 17th (local time) that "the United States must not default, and probably will not."
According to Bloomberg News and others, Dimon and other CEOs of U.S. banks met with Senate Majority Leader Chuck Schumer for the first time at the annual meeting held in Washington to discuss issues surrounding the debt ceiling increase.
This meeting was held at the direct request of the bank CEOs, with other major bank leaders such as Jane Fraser, CEO of Citigroup, also attending. Schumer emphasized, "I asked everyone to make it clear to the bank CEOs that default must not be an option."
After the meeting, Dimon drew a line on the possibility of default but confirmed, "Whatever happens, we will be prepared." JPMorgan, the largest by asset size, is already preparing for the risk of default. Earlier, Dimon had revealed that JPMorgan has been convening weekly war room meetings to prepare for the possibility of default and will hold daily meetings starting around the 21st.
The United States exhausted its $31.4 trillion debt ceiling on January 31 and has been holding on through special measures since then. There are growing concerns that if the debt ceiling is not raised promptly, the federal government will run out of cash in early June and fall into a default situation where it cannot repay its debts.
The following day, a meeting is also scheduled between Treasury Secretary Janet Yellen and bank CEOs. Previously, Secretary Yellen said that corporate executives publicly expressing concerns about the debt ceiling would help advance related negotiations. The day before, over 140 U.S. business CEOs urged the political sphere to swiftly raise the debt ceiling through an open letter.
President Joe Biden, before departing for Japan to attend the Group of Seven (G7) summit, expressed confidence in a press conference that "the United States can reach an agreement (to raise the debt ceiling) to avoid default." This statement is interpreted as an effort to ease anxiety and emphasize willingness to negotiate after a second meeting with congressional leaders the previous day failed to produce significant results, increasing fears of default.
Regarding the previous day's meeting, President Biden stressed, "All the leaders present know that if we fail to pay our bills, it would be catastrophic for the U.S. economy and the American people," and "Everyone agreed that we will not fall into default." Currently, President Biden has even shortened his overseas trip schedule to focus on debt ceiling negotiations.
On the same day, Republican House Speaker Kevin McCarthy also drew a line on default concerns surrounding the federal government's debt ceiling increase. Appearing on CNBC's Squawk Box, he said, "Ultimately, we believe there will be no default," and "We believe that in the end, the president agreed to negotiate." He emphasized, "The only thing I am sure of is that we now have a structure that allows us to find a way to reach a conclusion."
Meanwhile, the Democratic Party is preparing an emergency plan to immediately vote on a debt ceiling increase bill in the House of Representatives in case negotiations between President Biden and Speaker McCarthy ultimately break down.
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