US Treasury Secretary Janet Yellen stated Tuesday a debt default would trigger “catastrophe” within the nation.
“Since 1789, the United States has paid all of our bills on time. It should stay that way. In my assessment-and that of economists across the board-a default on our debt would produce an economic and financial catastrophe,” she informed in her speech on the Sacramento Metropolitan Chamber of Commerce’s 51st Annual “Capitol-to-Capitol” Program.
Yellen, nevertheless, stated this financial disaster is preventable.
“The solution is simple: Congress must vote to raise or suspend the debt limit. It should do so without conditions. And it should not wait until the last minute. I believe it is a basic responsibility of our nation’s leaders to get this done,” she informed.
Yellen has repeatedly urged Congress in latest months to droop or increase the debt restrict to keep away from a default on authorities obligations.
The American economic system hit its debt ceiling on Jan. 19, and Yellen stated her company has began taking “extraordinary measures” to keep away from a default.
The US has by no means defaulted on its debt, whereas the debt ceiling has been raised 22 occasions between 1997 and 2022.
Source: www.anews.com.tr
