US Treasury Secretary Urges Congress to Raise Debt Limit to Avoid Economic Catastrophe
Date
4/26/2023 3:07:24 AM
(MENAFN) US Treasury Secretary Janet Yellen has warned that a debt default would cause an "economic and financial catastrophe" in the United States. Speaking at the Sacramento Metropolitan Chamber of Commerce’s 51st Annual “Capitol-to-Capitol” Program, Yellen emphasized that the US has paid all of its bills on time since 1789, and it is crucial to maintain this record. She added that economists across the board share her assessment of the potential impact of a debt default on the nation.
Yellen, however, stressed that the economic catastrophe is preventable through a simple solution, urging Congress to vote to raise or suspend the debt limit without conditions. She emphasized the need for Congress to act quickly and not wait until the last minute, calling it a basic responsibility of the nation's leaders to get this done.
The US Treasury Secretary has made repeated requests to Congress in recent months to suspend or raise the debt limit to avoid a default on government obligations. The American economy hit its debt ceiling on January 19, and Yellen said that her agency has already started taking "extraordinary measures" to avoid a default.
The US has never defaulted on its debt, and the debt ceiling has been raised 22 times between 1997 and 2022. Yellen's warning highlights the potential consequences of failing to raise the debt limit, which could have a significant impact on the US economy and financial markets. The Treasury Secretary urges Congress to take action to prevent such a catastrophe and ensure the continued stability and prosperity of the nation.
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