Treasury Secretary: Fully expect recession if debt limit not lifted

Economy

5-10-2021, 23:17

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Baghdad-INA

Treasury Secretary Janet Yellen, on Tuesday said she believes the economy U.S. faces a recession if Congress doesn’t address the debt limit .within 2 weeks

would fall into a recession if Congress fails to address the federal government’s borrowing limit before an unprecedented default on the U.S. debt.

I do regard Oct. 18 as a deadline. It would be catastrophic to not pay the government’s bills, for us to be in a position where we lacked the resources to pay the government’s bills".

U.S. Treasury securities have long been viewed as the safest asset on the planet,” Yellen said. That partly accounts for the reserve status of the dollar, and placing that in question by failing to pay any of our bills that come due would really be a catastrophic outcome.