The three and other business leaders met U.S. President Joe Biden at the White House to pressure Republicans in Congress to vote for a debt ceiling increase, saying their opposition will take America "right to the brink." Yellen has warned the Treasury would have "very limited cash" after Oct. 18.
"This would be a catastrophic outcome," Yellen said on Wednesday. "It must be resolved immediately."
Republicans want Democrats to raise the debt ceiling using reconciliation, a process that would not require Republican votes. Democrats have refused, saying Republicans should join them in the vote because the debt includes about $8 trillion in spending approved during Republican Donald Trump's presidency.
A rift over the debt limit has been growing between corporate America and congressional Republicans, who are traditionally aligned on economic issues.
A U.S. debt default would severely hurt the country's credit rating, plunge the global financial system into turmoil and pose a major risk https://www.reuters.com/world/us/what-watch-market-stress-us-debt-ceiling-deadline-nears-2021-10-05 to company stock prices.
Friedman said that an extended delay in raising the U.S. debt limit would cause markets to react "very, very negatively," adding: "We urge action as quickly as possible."
Dimon said the cascading effect of a U.S. market meltdown could lead to global catastrophe for the world.
"We should never even get this close," he said. "This is a time when we should show "American competence, not American incompetence."
Jane Fraser, chief executive of Citigroup Inc, said a failure to raise the ceiling would also hurt everyday consumers by increasing borrowing costs "very quickly," including credit card and mortgage debts.
"We don't need a catastrophe of our own making to undermine the progress we have made."
(Additional reporting by Elizabeth Dilts; Writing by Michelle Price; Editing by Steve Orlofsky;)
By Steve Holland and Trevor Hunnicutt
