U.S. Treasury Secretary Janet Yellen on Monday pushed again on final week’s Moody’s resolution to chop its outlook on U.S. debt, saying the nation’s financial system is powerful and the Treasury market is each protected and liquid.
“This is a decision I disagree with,” she stated at a news convention on the shut of the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Meeting (FMM) in San Francisco, California.
The ranking company on Friday lowered its outlook on the U.S. credit standing to “negative” from “stable,” citing massive fiscal deficits and a decline in debt affordability.
The rise in long-term rates of interest would create a problem to debt sustainability if it lasts, Yellen acknowledged.
However, the Biden administration is “completely committed to a credible and sustainable fiscal path,” she stated, citing plans to cut back the deficit and investments within the Internal Revenue Service, which collects taxes.
Yellen additionally referred to as on House Republicans to work to keep away from a partial authorities shutdown that might come as quickly as the tip of this week.
It is the third fiscal showdown this 12 months, following a monthslong spring standoff that introduced the federal authorities to the brink of default.
The chance of a authorities shutdown is “an unnecessary economic headwind in a moment when the U.S. economy is doing well and moving in the right direction,” Yellen stated.
The U.S. Treasury on Monday stated the federal funds deficit in October shrank by almost 1 / 4 from a 12 months earlier, as revenues climbed to a document for the month due to the inflow of delayed tax funds from disaster-stricken areas.
Data final month confirmed the deficit in fiscal 2023, which ended Sept. 30, was the most important exterior the COVID-19 period at almost $1.7 trillion.
Source: www.dailysabah.com
