The debate over the US debt ceiling is having dire consequences, said Jane Fraser, chief executive of Citigroup, on Monday, even as the investment world breathes a sigh of relief because a troubled bank was bailed out on the same day by a larger competitor.
Fraser told the Milken Institute’s global conference that the debt-ceiling turmoil is “more worrisome” than previous events.
However, she said Wall Street executives are not picking up the phone to call Washington to tell politicians how to act in resolving the problem after Congress narrowly passed a bill last week to raise the US debt ceiling.
The executives discussed topics ranging from JPMorgan Chase’s bailout of the First Republic to how long the Federal Reserve will still need to raise interest rates at a time when the US economy is showing signs of more resilience.
In the face of uncertainty, Fraser did not say there would be a global financial crisis, but said the pressure would be there and would focus on certain sectors. She also said that she expected many people to win a lot of money.
