Treasury’s Yellen to Meet with Bank CEOs to Discuss Debt Ceiling Standoff

U.S Treasury Secretary Janet Yellen will meet with Bank Policy Institute board members on May 18 in Washington, D.C. She reportedly plans to discuss the current debt ceiling standoff with the board, which includes the CEOs of several of the nation’s largest banks.

According to a report from Reuters, JPMorgan Chase CEO Jamie Dimon plans to be in attendance for that meeting. Bank of America CEO Brian Moynihan and Citigroup CEO Jane Fraser are also expected to meet with Yellen. Reports suggest that the Treasury Secretary plans to also discuss the ongoing bank crisis with the board members.

Addressing the debt ceiling standoff

Dimon heads the board of directors at the Bank Policy Institute and had been vocal about his concerns about a potential debt default. In recent weeks, he has referred to a default as “potentially catastrophic.” He has also consistently warned about the danger to financial markets if a default occurs.

The Bank Policy Institute meeting is an annual event. The organization represents banks like JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs as a financial trade group. The timing of the meeting was not determined by the debt ceiling standoff, but most observers expect participants to address the crisis.

Other policymakers and regulators will likely address the participants during Thursday’s meeting. Historically, the annual BPI events include speeches and remarks from an array of D.C notables.

For her part, Yellen has been warning that the government could run out of money by June 1. In fact, she and other administration officials have been warning about the dangers of a debt ceiling standoff for many weeks. However, it is notable that the Republican-led House of Representatives passed a debt ceiling increase several weeks ago. Thus far, the Democrat-led Senate has refused to take up the bill or pass its own alternative legislation.

Negotiations between the White House and House Speaker Kevin McCarthy are still underway. But, as Yellen herself has noted, “Time is running out. The U.S. economy hangs in the balance. The livelihoods of millions of Americans do too. There is no time to waste.”