‘Cut up the credit cards:’ Members of Congress call for action after US debt surpasses GDP
Fortune • • business
Key Points:
- Prominent economic figures including Fed Chairman Jerome Powell, Bridgewater founder Ray Dalio, and JPMorgan CEO Jamie Dimon have warned about the risks of the growing U.S. national debt, highlighting potential crises like a bond market collapse and economic strain from debt service payments.
- Politicians across the spectrum, such as Senators Rick Scott, Nikki Haley, Rand Paul, and Jeff Merkley, have expressed concern that the rising debt is harming the economy by increasing costs of living, weakening national security, and diverting funds from critical domestic investments.
- A recent study by the Peter G. Peterson Foundation found that 92% of voters, cutting across party lines, believe that current debt levels are contributing to higher prices for essentials like groceries, energy, and housing.
- Despite the negative reactions to debt milestones, Congressional Budget Office Director Phil Swagel remains optimistic, citing thoughtful and effective policymakers engaged in addressing fiscal challenges to avoid a debt crisis.
