{"id":574781,"date":"2023-05-16T17:04:28","date_gmt":"2023-05-16T14:04:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/yellen-warns-of-catastrophic-default-time-is-running-out\/"},"modified":"2023-05-16T17:04:28","modified_gmt":"2023-05-16T14:04:28","slug":"yellen-warns-of-catastrophic-default-time-is-running-out","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/yellen-warns-of-catastrophic-default-time-is-running-out\/","title":{"rendered":"#Yellen warns of catastrophic default: \u2018Time is running out\u2019"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/yellenjanet_051123_AP_ShujiKajiyama.jpg?w=900\" \/><\/p>\n<div>\n<p>Treasury Department Secretary Janet Yellen warned Tuesday that \u201ctime is running out\u201d for Congress to lift the debt ceiling and avert a default on the nation\u2019s debt, which the secretary says would be catastrophic for the economy.<\/p>\n<p>\u201cTime is running out. Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the U.S. economy,\u201d Yellen said <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy1484\">in rema<\/a><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy1484\">rks to the<\/a> Independent Community Bankers of America.\u00a0<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p>Yellen\u2019s department has warned that its ability to stave off a default through the use of extraordinary measures could run out by June 1 unless Congress takes action, and the White House has been locked in debate with lawmakers on how to address the looming deadline. <\/p>\n<p>\u201cOur current best estimate underscores the urgency of this moment: It is essential that Congress act as soon as possible. In my assessment \u2014 and that of economists across the board \u2014 a U.S. default would generate an economic and financial catastrophe,\u201d Yellen said. <\/p>\n<p>The community and regional bankers in Yellen\u2019s audience Tuesday would be among those hit hard by the potential financial crisis.\u00a0<\/p>\n<p>A default would reverse the country\u2019s economic progress and put the economy in the middle of an \u201cunprecedented economic and financial storm,\u201d likely leading to a loss of income and sparking a recession, Yellen argued. Services such as air traffic control, law enforcement, border security and national defense, all reliant on federal employees and contractors, could also be disrupted.<\/p>\n<p>President Biden and Speaker Kevin McCarthy (R-Calif.) are expected to meet again Tuesday to talk about a possible deal to raise the borrowing limit. <\/p>\n<p>Republicans have been pushing for a debt ceiling increase that\u2019s tied to spending cuts, while the White House is advocating for a \u201cclean\u201d hike. Biden has also reportedly considered using the 14th Amendment to raise the ceiling on his own, as a possible last-ditch move if Congress doesn\u2019t act. <\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p>\u201cThe U.S. Treasury market serves as the very bedrock of the global financial system. There\u2019s a reason for that: The world has never doubted that America will pay the principal and interest on its bonds, in full and on time. \u2026 A default would crack open the foundations upon which our financial system is built,\u201d Yellen said Tuesday, warning of \u201cworldwide panic triggering margin calls, runs, and fire sales.\u201d<\/p>\n<p>\u201cLet me be clear: If Congress does not address the debt limit, there are no good options that Treasury or the government can use to save us from catastrophe,\u201d Yellen said.<\/p>\n<p>\u201cGenerations of Americans have protected the full faith and credit of the United States. That has been a bedrock of our global economic leadership. There is no good reason to squander that reputation now \u2014 and to trigger a manufactured crisis of our own creation.\u201d<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/economy\/4006246-yellen-warns-of-catastrophic-default-time-is-running-out\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Department Secretary Janet Yellen warned Tuesday that \u201ctime is running out\u201d for Congress to lift the debt ceiling and avert a default on the nation\u2019s debt, which the secretary says would be catastrophic for the economy. \u201cTime is running out. Every single day that Congress does not act, we are experiencing increased economic costs&#8230;<\/p>\n","protected":false},"author":1,"featured_media":574782,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/05\/yellenjanet_051123_AP_ShujiKajiyama.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[81188,143324,52214,72134,116734,138150,5069,134661,73014,133498,991,35813,71525,115,4947,79097],"class_list":["post-574781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-janet-yellen","tag-borrowing-limit","tag-congress","tag-debt","tag-debt-ceiling","tag-debt-limit","tag-economy","tag-energy-environment","tag-health-care","tag-in-the-know","tag-joe-biden","tag-kevin-mccarthy","tag-national-security","tag-news","tag-opinion","tag-president-joe-biden"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/574781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=574781"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/574781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/574782"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=574781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=574781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=574781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}