A U.S. default on the national debt would be a “catastrophic blow” to the country’s economic recovery from COVID-19 that could lead to recession territory, said Moody’s Analytics in a new report as other analysts issued similarly dire predictions. Bond credit rating firm Moody’s, in a report (pdf) on Tuesday, said that if the United States defaults and a congressional deadlock lingers, nearly 6 million American jobs could be wiped out. “Shutting the government down would not be an immediate hit to the economy, but a default would be a catastrophic blow to the nascent economic recovery from the COVID-19 pandemic,” the report said. “Global financial markets and the economy would be upended, and even if resolved quickly, Americans would pay for this default for generations, as global investors would rightly believe that the federal government’s finances have been politicized and that a time may come when they would not be …
RSS Feed | The Epoch Times