2023-05-19 01:12:05 (TOKYO) – The Governor of the Bank of Japan, Kazuo Ueda, has expressed concern that a U.S. debt default could result in market turmoil, which is likely to have a significant impact on the global economy. Speaking to parliament on Friday, Ueda stated that there was a risk of turbulence in various markets and that it could affect a wide range of financial transactions.
The comments come as the U.S. approaches a deadline to raise its debt ceiling. Failure to do so could result in the U.S. government defaulting on its debt, which would have serious repercussions for the global economy. The U.S. debt is considered to be one of the safest investments in the world, and a default would shake investor confidence and cause a ripple effect in markets around the globe.
Ueda’s comments highlight the growing concern among policymakers about the potential fallout from a U.S. debt default. The Bank of Japan has pledged to maintain market stability and respond flexibly to economic, price, and financial developments in the event of such an occurrence.
