140 US Executives Urge Debt Negotiation Settlement... "Default Is a Disaster"

More than 140 top executives from major U.S. companies, including David Solomon, CEO of Goldman Sachs, urged President Joe Biden and Congress to swiftly resolve the debt ceiling negotiations.

According to Bloomberg on the 16th (local time), the leading U.S. executives stated in an open letter addressed to President Biden and House Speaker Kevin McCarthy that "a U.S. default could be a potential disaster." The letter was signed by Albert Bourla, CEO of Pfizer, James Gorman, CEO of Morgan Stanley, Jeff Gennette, CEO of Macy's, among others.

They argued, "Stress on the economy has already surfaced due to recent bank failures," adding, "If a default occurs, the situation will worsen. This could weaken the United States' position in the global financial system."

They cited the 2011 example during the Barack Obama administration when partisan conflicts over the debt ceiling negotiations caused the stock market to plunge 17%, repeatedly urging a swift resolution to the debt negotiations.

On the same day, President Biden met with congressional leaders, including Republican House Speaker Kevin McCarthy, at the White House to discuss raising the debt ceiling, but no agreement was reached. This meeting was the second since June 9.

The United States exhausted its $31.4 trillion debt ceiling in January and has since used special measures to buy time for negotiations, but those measures are now nearing their limit. Earlier, U.S. Treasury Secretary Janet Yellen indicated that the "X-day," the projected default date, is June 1.

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