A long-term solution to the federal budget deficit must include spending cuts and increased
revenue, Alcoa Inc. Chairman and CEO Klaus Kleinfeld told the CNBC Squawk Box crew this morning.
Kleinfeld called a downgrade in the US credit rating or a default “a nuclear option” and urged Congress and the President must come to terms on a plan that “gets us over the hump.”
The current debate is sucking the air out of the economy, Kleinfeld said, but he’s optimistic a deal will be reached on the debt ceiling before the Aug. 2 deadline.
I’m not so confident a deal beating the deadline, but Kleinfeld is right about one thing it will take spending cuts and increased revenue to solve the deficit problem. Not just one, but both.
Kleinfeld Squawk Box interview: Getting America Back on Track