Top executives from 146 major companies in the U.S. — including Morgan Stanley, Goldman Sachs, Nasdaq. Pfizer — have urged President Joe Biden and Congress to act quickly to prevent the U.S. defaulting on its debt which could happen as soon as June 1. They warned of “potentially disastrous consequences” if the U.S. defaults its debt obligations.
An open letter from the executives was sent to President Joe Biden and congressional leaders, urging them on to take quick action to save the U.S. Among the letter signers were Goldman Sachs CEO David Solomon, Morgan Stanley CEO James Gorman, Nasdaq CEO Adena Friedman, Guggenheim Partners Executive Chairman Alan Schwartz, and Pfizer CEO Albert Bourla.
Addressing President Biden, Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, House Speaker Kevin McCarthy, and House Minority Leader Hakeem Jeffries, the executive wrote: “We write to express your concern about the possible disastrous consequences if the federal government fails to fulfill its obligations. Absent action, the government may run out of money within a few months. Now is the time to stop the debt crisis.”
The executive noted the “negative consequences” that could arise from the U.S. defaulting on its debt, including “high inflation” and “several recent bank failures,” as well as the potential for the government to be unable to pay its other bills, including Social Security and Medicare benefits.
“We strongly urge that an accord be reached quickly so that the country can avert this potentially devastating scenario,” they concluded.
President Joe Biden has expressed confidence that an agreement can be reached with Republicans, while a group of Senate Democrats is said to be circulating a letter urging him to use the 14th Amendment to resolve the debt ceiling standoff unilaterally. Former President Donald Trump recently urged Republican lawmakers not to let the U.S. default on its debt.
What do you think of the 146 executives urging President Joe Biden and the leaders of Congress to act quickly to avoid a U.S. default on its debt obligations? Let us know in the comments.
