Missouri Bankers Association explains the debt ceiling

In Washington D.C., Congress has until June 1st to raise the debt ceiling to prevent the U.S. from defaulting. Jackson Hataway, President of the Missouri Bankers Association explains what this means for Missourians:

“The June 1 deadline I think snuck up on a lot of folks. Most were anticipating July-ish for the US to suddenly come up against the fiscal wall, as it were, and when Treasury Secretary Yellen said June 1, you saw a lot of reaction from the administration and from both chambers suddenly became very active in trying to get conversation going.” 

If the United States hits that deadline without a resolution in place on the debt ceiling, the government would not have money to pay many of its bills, which, Hataway says, could result in a recession worse than in 2008. 

For Missouri, several millions of jobs could be eliminated as well as services like Social Security payments being paused.