US Treasury Secretary Janet Yellen is slated to discuss the looming risk of a US debt default with Jamie Dimon and Jane Fraser, the chief executives of JPMorgan Chase and Citigroup, in an upcoming meeting next week. The report comes via Policy, citing unnamed sources familiar with the plans.
The outlet notes that Yellen will convene with other leading figures from major American financial institutions who sit on the board of a prominent banking policy lobbying group. The conversations are expected to center on practical steps to avert a default on the federal debt and to explore immediate and longer‑term policy options. According to the publication, none of the bank executives received formal offers from the Treasury ahead of the discussions, suggesting the talks are exploratory in nature and aimed at informing policy considerations rather than signaling concrete appointments.
Meanwhile, Kevin McCarthy, the former Speaker of the U.S. House of Representatives, indicated that a Friday meeting between congressional leaders and President Joe Biden on the national debt had been postponed with broad agreement from all parties. He stressed that the postponement should not be read as a failure but as a pause to allow for more comprehensive deliberations and coordination across branches of government and with the private sector.
Earlier reporting indicated that a planned session on raising the debt ceiling, which was scheduled for Friday, May 12, with President Biden and congressional leaders, was deferred to the following week. Analysts describe these delays as an attempt to align fiscal policy discussions with the evolving economic landscape and to ensure that any decisions are taken with full awareness of potential market implications and the broader macroeconomic environment. The discourse around the debt ceiling has been a flashpoint in recent months, with stakeholders across government, finance, and industry weighing the tradeoffs between deficit financing, economic growth, and financial stability. In this context, the participation of top bank executives in policy discussions is viewed by observers as a signal that private sector perspectives are being sought to inform legislative and executive actions. The overall narrative remains focused on safeguarding credit markets, preserving investor confidence, and avoiding abrupt changes that could disrupt liquidity and market functioning. Attribution: Policy, citing unnamed sources familiar with the matter.