U.S. Treasury Secretary Janet Yellen speaks during a press conference at the U.S. Treasury Department in Washington, DC, April 11, 2023.
Stephanie Reynolds | AFP | Getty Images
Treasury Secretary Janet Yellen said on Sunday that failing to raise the debt ceiling would trigger a “sharp recession” in the United States, and the Treasury Department could run out of steps to pay its debts by June. I repeated the warning.
Yellen told ABC’s “This Week” that “unless Congress raises the debt ceiling, we’ll see a day when we can’t pay in early June, and I’m urging Congress to do so.” said.
Yellen said the U.S. had already taken “extraordinary measures” to avoid a default, something the Treasury Department could not continue. She said Congress needed to take action to avoid an “economic disaster.”
“It is widely agreed that financial and economic turmoil will continue,” Yellen said.
Lawmakers have tried to find a way forward toward raising or suspending the debt ceiling. However, they are now stuck and the likelihood of default is increasing.
Yellen called for decisive action quickly.of letter On Monday, Fed Chair Yellen gave her estimate of when new data on tax revenues would prevent the Treasury Department from “continuing to be unable to meet all of its governmental obligations,” potentially pushing this date closer than Wall Street economists had expected. is also early.
On Monday, President Joe Biden announced the “Big Four” congressional leaders — Senate Majority Leader Chuck Schumer (DN.Y.) and Senate Minority Leader Mitch McConnell (R-Ky., McCarthy). , called House Democratic Leader Hakeem Jeffries (NY) and invited him. He plans to attend a meeting at the White House on May 9 about the debt ceiling, a White House official told NBC.
Jeffries said on Sunday that the meeting hosted by Biden was “very important” and would help the United States find a way forward.
“We have to avoid defaults,” he told NBC’s “Meet the Press.”
But for Oklahoma Republican Senator James Lankford, the meeting on the debt ceiling should have happened sooner. He said the issue was brought up the week after the November election and that President Biden’s refusal to negotiate was “amazing”.
“Everybody knew this was coming, but the president refused to negotiate it.
