“The closer you get to it, you will have panic,” Dimon told Bloomberg on Thursday. JPMorgan CEO Jamie Dimon echoed those concerns, pointing to the risk of mayhem in markets. “The impacts are really quite acute, often for those who can least weather those economic storms.” Corporate America, main street, all of it could be affected,” Chopra said. “From our own knowledge and oversight of the banking system, we know that everyone is extremely concerned. Moody’s Analytics estimates that states including Florida, Ohio, Pennsylvania and Texas would lose hundreds of thousands of jobs apiece if there is a prolonged breach of the borrowing limit. The White House has estimated more than 8 million jobs would get wiped out if there is a protracted default. Some economists have warned of mass layoffs if the government defaulted. Elizabeth Warren that was created by the 2010 Dodd-Frank financial reform law, is “looking very hard” into the impact a default would have on households. He added that the CFPB, a brainchild of Massachusetts Democratic Sen. “A lot of things we assume are part of our financial fabric would get ripped away,” Chopra told CNN. But in his response, Chopra made clear he has the exact opposite view. “If global investors do not think that is completely safe, all of us will end up paying for it,” Chopra said.Īsked to react to former President Donald Trump dismissing a default as perhaps just a “week or bad day” to CNN’s Kaitlan Collins, Chopra declined to comment directly on political candidates. US Treasuries have long been viewed as risk-free assets, keeping their rates very low.

The nonpartisan Congressional Budget Office said Friday there is a “significant risk” the federal government will no longer be able to pay all of its obligations during the first two weeks of June.Ĭhopra said a default would cause borrowing costs - including credit card, car loans and mortgage rates - to spike because US debt serves as a critical benchmark for various forms of credit.

If Congress fails to address the debt ceiling, the federal government could run out of money as soon as June 1, according to Treasury Secretary Janet Yellen. Every family should be concerned,” Rohit Chopra, director of the Consumer Financial Protection Bureau, told CNN in an interview on Thursday. The top consumer watchdog in the federal government is warning of dire consequences for American families. Leaders in Washington are running out of time to avoid an unprecedented default on US debt.

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