The American Bankers Association joined the Securities Industry and Financial Markets Association, the Bank Policy Institute, the Financial Services Forum and the Investment Company Institute in a letter to congressional leaders supporting action to raise the federal debt ceiling “without delay.” The groups warned that “a failure to act would negatively impact the creditworthiness of the United States to the detriment of financial stability and the overall economy.”
According to the Treasury Department, the government is expected to reach its federal borrowing limit sometime in October. The groups warned that failing to raise the debt ceiling and allowing the U.S. to default on its debt would have serious implications.
“Defaulting on our existing obligations would be irresponsible and do irreparable harm to the U.S. economy and taxpayers,” the groups wrote. “We respectfully urge you to act and take the critical steps necessary to protect our nation’s financial standing in the world. Even a short-term delay would cause serious harm at a time when our economy continues to recover from the impact of the COVID-19 pandemic.”