US Treasury Secretary Janet Yellen Urges Congress to Act Quickly on Debt Limit – During a press conference in Niigata, Japan, U.S. Treasury Secretary Janet Yellen reiterated her concerns about the potential impact of a U.S. debt default. Yellen stressed that a default would be a self-inflicted crisis and urged Congress to take swift action on the matter, emphasizing that the outcome of defaulting would be unthinkable.
Yellen’s remarks come as she calls on Congress to raise the debt ceiling to avoid any negative economic consequences. Yellen declared: “There is no good alternative that will save us from catastrophe. I don’t want to get into ranking which bad alternative is better than others, but the only reasonable thing is to raise the debt ceiling and to avoid the dreadful consequences that will come.” Furthermore, Yellen stated that, for her, this would be a self-inflicted crisis that has no reason to be happening.
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She explained: “There is no good reason to generate a good crisis of our own making. The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960. I urge it to act quickly to do so once again.” Yellen had previously cautioned about the catastrophic impact that a U.S. debt default would have on the country’s economic system and global markets.
During her recent remarks, Yellen reiterated her concerns, stressing that the consequences of defaulting would be unthinkable. She explained: “The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable. America should never default.”
Despite efforts to negotiate a bipartisan solution, the debt limit issue remains unresolved as Republicans are pushing for cost-cutting measures that could impact critical areas for Democrats such as healthcare and social benefits. The deadlock has created a tense situation, with concerns rising about the potential for a U.S. debt default and the serious consequences that could follow.
However, Treasury Secretary Janet Yellen is optimistic that a resolution can be reached. She believes that it is crucial for Congress to raise the debt ceiling to ensure the stability of the U.S. economy and avoid serious consequences for the American people.
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She has stated that she is “very hopeful” that the two parties will be able to find common ground during the negotiations scheduled to take place this Friday. The stakes are high for both parties. Failure to reach a compromise could result in a potential U.S. debt default, which could have far-reaching consequences for the global economy.
