US Treasury Secretary Janet Yellen warned that the United States could default on its debt in early June. Meanwhile, American politicians are fighting over raising the government’s borrowing limit.
Yellen wrote a letter to House Speaker Kevin McCarthy and stated that unless Congress acts, there will be “serious hardship for American families.” He added: “A default would damage our global leadership position and raise questions about our ability to defend our national security interests.” Experts warn of a possible crisis on the scale of the 2008 financial collapse.
Eric Van Nostrand, acting undersecretary for economic policy, said in a statement that “even if Congress ultimately raises the debt limit before a default occurs, the resulting uncertainty could increase borrowing costs and induce other financial stresses that would weaken our labor market and our economy.
#LAST MINUTE The US could default on its debt by early June, Treasury Secretary Janet Yellen said on Monday, as politicians wrestle over raising the government’s borrowing limit. pic.twitter.com/CT8eGtjKKE
— Agence France-Presse (@AFPespanol) May 1, 2023
#warn #United #States #fall #default