Fed’s Fisher Says U.S. Can’t Afford Default Amid Debt Debate

Federal Reserve Bank of Dallas President Richard Fisher said the U.S. “cannot afford to default” on its debt as the deadline to raise the debt ceiling approaches.

Default is “unthinkable,” and “no one will ever trust us again,” Fisher, who doesn’t vote on policy this year, said today in Dallas, Texas. “I don’t think we will default, but it will come down to the wire,” said Fisher, who has opposed record monetary stimulus.

Many U.S. government services have been shuttered for a week and the country is 10 days away from running out of borrowing authority. Republicans are insisting on changing the 2010 Affordable Care Act, while President Barack Obama refuses to engage in discussions about policy conditions tied to ending the shutdown or raising the debt limit.

“It’s a big game of chicken and it’s a scary game,” Fisher said in an address at Southern Methodist University.

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