US Treasury Secretary Yellen Once Again Called for an Increase in the Debt Ceiling to avoid “Economic Disaster”
US Treasury Secretary Janet Yellen once again called on Congress to raise or suspend the debt ceiling and warned that if not, the federal government will run out of funds at some point in October and cannot pay the bills.
Yellen said, “The overwhelming consensus of economists and officials from both parties of the Treasury Department is that if the debt ceiling is not raised, it will lead to widespread economic disaster.”
The US House of Representatives this week will vote on a plan to raise the $28 trillion debt ceiling, but the political deadlock between the two parties may still lead to a default in the United States next month.
Yellen said that the US default may trigger a historic financial crisis, and will make the damage of the newcovid -19 epidemic worse, plunge the United States into recession, and cause permanent fragility.
“Delays and breaches of contract cannot be tolerated” and lawmakers must act quickly, Yellen added.
Yellen previously called Senate Minority Leader McConnell to seek Republican support for raising the debt ceiling, but was rejected.