“Goldman Sachs CEO warns of impending catastrophe over US debt ceiling standoff”

Investing.com – One of the 144 business leaders, CEO David Solomon, has warned that the US stock market is in danger of a catastrophe if the standoff in Congress over the debt ceiling is not resolved soon. writes Business Insider.

“Action is urgently needed to avert a looming debt crisis,” industry leaders said in an open letter to President Joe Biden and Congressional leaders.

The stock market is in for a disaster if US lawmakers don’t vote to raise the debt ceiling soon, so the long-running deadlock needs to be broken as soon as possible before the government runs out of money.

“We are writing to highlight the potentially catastrophic consequences of the federal government failing to meet its obligations,” bank executives said. “Without a resolution, the government is likely to run out of money by June 1st.”

Recall that the debt ceiling is the limit on the amount that the government can borrow, set by Congress. On January 19, the $31.4 trillion limit was set, but the Biden administration and the House of Representatives still cannot agree on how to resolve the brewing crisis.

Republicans are not voting to lift the cap unless the White House agrees to future spending cuts.

And Treasury Secretary Janet said the X date, when the government runs out of money, could be as early as June 1st.

Standard & Poor’s also stripped the US of its AAA rating, and according to Moody’s, the uncertainty also led to a 0.7% rise in unemployment.

Also, the US economy is suffering from high inflation and the recent collapse of the regional banks Silicon Valley Bank and First Republic.

— Materials from Business Insider were used in the preparation

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