Moody's chief economist: US debt default would cost economy $15trn

Congress must raise debt ceiling

The United States could wipe out 6 million jobs and about $15trn in household wealth if Congress fails to raise the debt ceiling, according to new analysis.

Mark Zandi, chief economist at Moody's Analytics, warned of a "catastrophic" fallout that Congress has weeks to avoid if it cannot come to an agreement on whether to raise how much the US government can borrow. While the report notes that shutting down the government would not immediately cause a recession, estimates of the previous 2018-2019 government shutdown put the cost to the US economy at $11bn. The true danger to the economy comes when the Treasury exhausts its funds and defaults on its debt, which the report states would happen around 20 October. Juliet Schooling Latter: US e...