May 27, 2024

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Citi’s Fraser warns US debt ceiling debate could have dire consequences

Citi’s Fraser warns US debt ceiling debate could have dire consequences

Citigroup CEO Jane Fraser said Monday that the debt ceiling debate in the U.S. was having dire consequences, the same day the investment world breathed a sigh of relief that the ailing bank was rescued by a major rival.

The debt ceiling debacle is “more worrisome” than previous events, Fraser told the Milken Institute Global Conference.

However, after Congress narrowly passed a bill to raise the U.S. debt ceiling, he said, Wall Street executives did not pick up the phone to call Washington to ask politicians how to deal with the problem.

JP Executives debated topics ranging from Morgan Chase’s rescue of First Republic Bank to how soon the Federal Reserve might have to raise interest rates at a time when the U.S. economy is showing signs of further recession.

In the face of uncertainty, Fraser did not say there was a global financial crisis, but he said there would be stress and focus on certain sectors. He also said that many people expect to earn a lot of money.

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