Reuters reported that Philadelphia Federal Reserve President Patrick Harker said on Friday in the latest warning from a central banker over the debt ceiling that a default on US government debt triggered by political brinkmanship over federal borrowing limits and the budget deficit would be dire,

"Imagine us as a nation, the leading nation in the world, defaulting on our debt - that's hard to recover from," Harker said at a Global Interdependence Center conference in La Jolla, California. "And our competitors, our enemies, will cheer in the streets."

Key notes

Fed's keeping rates low meant hurdle rate for new investments was low, may have fostered crypto investments.
    
We want economy to keep growing, but also to get inflation under control, that's job one.
    
Will take time for inflation to get to 2%.
    
Consequences of a debt ceiling crisis would be dire.
    
A US debt default would be hard to recover from, our enemies would cheer in the streets.
    
We have issues in the federal budget, but debt ceiling brinkmanship is not the way to fix it.
    
Fed should not risk losing its independence.
    
Ultimate litmus test for central bank digital currency is if we need to do it to maintain trust in the US Dollar,

Harker was reported saying.