Acknowledging the ongoing challenges brought on by sustained high inflation, ABA President and CEO Rob Nichols noted that the nation’s debt outlook should also be cause for serious concern for lawmakers during remarks at a local chamber of commerce meeting in Rhode Island today. “It’s a terrible place to be,” Nichols said of the nation’s debt, which is nearly equivalent to U.S. GDP. “No one in Washington is talking about how to pay down our roughly $28 trillion in debt.”
The nation’s debt-to-GDP ratio should be a greater cause for concern for the nation’s policymakers than the current inflation situation, ABA President and CEO Rob Nichols told attendees at a local chamber of commerce meeting in Rhode Island today. “It’s a terrible place to be,” Nichols said of the nation’s debt, which is nearly equivalent to U.S. GDP. “No one in Washington is talking about how to pay down our roughly $28 trillion in debt.”
Nichols also addressed other key challenges facing the banking industry, including the growing popularity of cryptocurrencies that has prompted U.S. regulators to explore the idea of offering a central bank digital currency—which he called “a solution in search of a problem.” He also continued to advocate for regulatory parity between cryptocurrency firms and banks, given the growing number of these firms that have sought special purpose bank charters. “If you want to do bank-like things . . . there should be a level of supervision over that entity,” he said. “It’s just a level playing field argument.”
