Federal Reserve Bank of Chicago President Austan Goolsbee expressed optimism that there’s bipartisan support for a tentative deal to raise the US debt ceiling, adding that a failure to do so would be detrimental to the economy.
“We must raise the debt ceiling,” Goolsbee said Sunday in an interview on CBS’s Face the Nation. “If you did not do that, the consequences for the financial system and for the broader economy would be extremely negative.”
White House and Republican negotiators reached a tentative compromise late Saturday to raise the debt ceiling and avert a default that threatened to send tremors through the global economy. Lawmakers have until June 5 to pass legislation before the Treasury is expected to run out of headroom to keep paying its obligations on time, Treasury Secretary Janet Yellen said Friday.
Read More : Fed’s Goolsbee Sounds Alarm: US Default Would Have ‘Extremely Negative’ Impact on Economy