US Treasury Secretary Janet Yellen speaks during a news conference at the IMF and World Bank annual meeting at the IMF headquarters on October 14, 2022 in Washington, DC. Drew Anger / Getty Images
Janet Yellen is warning CEOs on the “devastating” economic impact to come if the US defaults on its debt, Reuters reported.
The Treasury Secretary had recently said that the government may run out of money from June 1.
He told ABC News on Sunday that Congress failing to raise the $31 trillion debt ceiling could lead to an “economic and financial catastrophe.”
Treasury Secretary Janet Yellen is personally calling CEOs and other business executives to warn them of the “devastating” impact if the US government defaults on its debt obligations, according to Reuters.
Yellen is reaching out to financial sector leaders to warn them of the “dangerous consequences of the current fragility,” according to a Reuters report on Monday, which cited two unnamed sources familiar with the matter.
The Treasury Secretary continues to urge Congress to raise the debt ceiling and recently warned that the government could run out of money and create an economic crisis that would lead to the loss of millions of jobs and the global economy to collapse by June 1. will be stopped.
And although the sources did not disclose to Reuters his motive for the call, US President Joe Biden’s administration officials have reportedly held talks with business executives to push the Republican to raise the US debt ceiling without conditions. Could
She delayed her trip to Japan for this week’s G7 meeting in order to give an interview with ABC News on Sunday, Reuters reported, where she warned that Congress could face financial crisis if it fails to raise the $31 trillion debt limit. There could be an “economic and financial catastrophe”.
“Congress is doing its job and raising the debt ceiling and there’s no way to protect our financial system and our economy other than to enable us to pay our bills. And we shouldn’t get to the point where We need to consider whether the president can go on issuing debt. That would be a constitutional crisis,” Yellen told ABC News on Sunday.
The Republican-controlled House of Representatives passed a bill on April 26 from House Speaker Kevin McCarthy. The bill offered to lift the debt ceiling in exchange for cutting government spending by about 8% in 2024, among other conditions. But Democrats are demanding a “clean” bill that raises the debt ceiling unconditionally.
Biden has invited Congressmen McCarthy, House Minority Leader Hakeem Jeffries, Senate Majority Leader Charles Schumer and Senate Minority Leader Mitch McConnell to a meeting on Tuesday to work on an agreement.
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