LIVE STREAMING
Janet Yellen, United States Secretary of the Treasury
The Secretary of the Treasury of the United States warns about a shortage of cash and a possible default for the country. Photo: AP.

The United States could default on its debt for the first time

Secretary of the Treasury Janet Yellen recently told Congress that the United States could default on its obligations.

MORE IN THIS SECTION

A Debt on Plastic Pollution

December 5th, 2022

Krasner Sues

December 5th, 2022

HBCU Students Blocked

December 5th, 2022

Few PA Weed Pardons

December 2nd, 2022

LUMA contract extended

December 2nd, 2022

Short term immigration win

December 1st, 2022

Shut Down Berks Reflects

December 1st, 2022

Mobilizing Georgia Latinos

December 1st, 2022

SHARE THIS CONTENT:

Through a letter sent to the leaders of Congress, the Secretary of the Treasury of the United States Janet Yellen, warned her entity was a month away from running out of cash, pointing to the extraordinary means being exhausted so the federal government can stay within its legal limit of indebtedness.

She invited the legislative body to not wait until the last minute to reach an agreement that does not undermine the trust of the market and the consumers.

In the document, Yellen highlights that once the taken measures and available cash have been exhausted, "the United States will not be able to meet its obligations for the first time in our history," while indicating that, due to the current uncertainty, her department could not determine a specific date for the duration of the "extraordinary" measures.

In this vein, the United States could face a scenario where payments towards its national debt could be suspended in October. The U.S. economy would enter a state of "default" if Congress does not approve an increase in the debt limit, an action that was suspended during the Donald Trump administration.

The letter informing about the "ultimatum" was addressed to the Speaker of the House Nancy Pelosi and Senate Majority Leader Chuck Schumer, both Democrats, as well as to the Republican leaders Kevin McCarthy and Mitch McConnell.

Yellen also released a statement on Monday, Sept. 6, during the celebration of Labor Day in the United States.

 

  • LEAVE A COMMENT:

  • Join the discussion! Leave a comment.

  • or
  • REGISTER
  • to comment.
  • LEAVE A COMMENT:

  • Join the discussion! Leave a comment.

  • or
  • REGISTER
  • to comment.
00:00 / 00:00
Ads destiny link