Treasury Secretary Janet Yellen warned that if the White House is forced to cite the 14th Amendment to raise the debt ceiling, it could lead to a "constitutional crisis". This week marks a defining challenge for House Speaker Kevin McCarthy as he attempts to strike a deal with President Biden to avert an unprecedented debt default. Yellen urged Congress to act quickly and responsibly to raise the debt ceiling and avoid a potential global economic crisis.
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Treasury Secretary Janet Yellen warned of an economic "calamity" if Congress does not raise the nation's borrowing limit, adding urgency to a meeting between President Joe Biden and congressional leaders. Yellen said a default could cause a "severe" economic downturn with a "ripple effect" felt around the world, and that the government would have to choose between paying Social Security benefits, military salaries, or interest on the debt.
Treasury Secretary Janet Yellen has warned of "economic and financial catastrophe" if the debt ceiling is not lifted or suspended by June 1. Congressman Patrick McHenry of North Carolina, Chairman of the House Financial Services Committee, is working to come up with a solution to the debt ceiling issue, noting that a "protracted" default could trigger a Great Recession type of scenario. Both are urging Congress and the White House to come to an agreement before the June 1 deadline in order to avoid economic disaster.
The US is facing an unprecedented default as it reaches its legal borrowing limit, leading to a standoff between Congress and the White House. The recent influx of cash to the IRS has allowed it to process new and backlogged tax returns, giving policymakers a more precise picture of when the Treasury could run out of money. Republicans have proposed extending the deadline, though the White House has not made any commitments.
The U.S. is facing a potential default on its debt for the first time in history, with economists warning of dire consequences. Small business owners are particularly vulnerable, and President Biden is set to meet with congressional leaders to try and reach a deal to prevent a default. It is hoped that this meeting will result in an agreement that will prevent the U.S. from defaulting on its debt.
Key takeaways: The White House Council of Economic Advisers (CEA) identified three potential scenarios of varying severity that could result from the current debt ceiling…
The United States is facing a potential debt crisis, with the possibility of defaulting on its debt as early as June 1. In response, House Democrats have taken the first procedural steps to try to force a House vote on a clean debt ceiling increase. President Biden has invited the top four congressional leaders to the White House on May 9 to discuss potential solutions to avert the crisis.
Treasury Secretary Janet Yellen has warned congressional leaders that the US may be unable to pay its bills as soon as June 1 due to a looming debt limit. Yellen urged Congress to take action to raise or suspend the debt limit before June 1 in order to avoid a potential default on the government's obligations, noting that the Treasury is taking steps to conserve cash but that these measures will not be enough.