Yellen: Action needed on debt limit

The United States is running perilously close to default as lawmakers remain at a stalemate. Congressional approval is needed to raise the debt limit for past spending measures.

By

National News

October 5, 2021 - 10:24 AM

WASHINGTON (AP) — U.S. Treasury Secretary Janet Yellen said Tuesday that Oct. 18 remains the date she is likely to run out of resources to stave off an unprecedented default on the nation’s debt without congressional action to raise the debt limit. She rejected the idea of minting a $1 trillion coin to avoid a default.

Appearing on CNBC Yellen said that if a default were to occur “I fully expect it would cause a recession as well” along with preventing the government from paying benefits to 50 million Social Security recipients and meeting the government’s other bills.

She said it would be “catastrophic” if the government did not have the resources to pay its bills.

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