Janet Yellen, United States Treasury secretary, throughout a press conference at the Group of Seven (G-7) financing ministers and reserve bank guvs fulfilling in Niigata, Japan, on Thursday, May 11, 2023.
Treasury Secretary Janet Yellen stated the concept of U.S. legislators letting the country default on its financial obligation need to be “unthinkable.”
Speaking to press reporters ahead of the G-7 financing ministers and reserve bank guvs conferences in Niigata, Japan, Yellen stated she knew previous President Donald Trump’s idea for Republican legislators to let the country default.
“The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable,” she informed press reporters. “America should never default.”
When inquired about actions the Biden administration might take in the wake of a default, Yellen highlighted that legislators should raise the financial obligation ceiling.
“There is no good alternative that will save us from catastrophe. I don’t want to get into ranking which bad alternative is better than others, but the only reasonable thing is to raise the debt ceiling and to avoid the dreadful consequences that will come,” she informed press reporters, keeping in mind that defaulting on financial obligation can be avoided.
“There is no good reason to generate a good crisis of our own making. The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960. I urge it to act quickly to do so once again,” she stated.
Yellen’s remarks followed she cautioned of an “economic catastrophe” if the U.S. stops working to raise its financial obligation ceiling in the coming weeks. She has likewise formerly cautioned that the U.S. might stop working to satisfy its financial obligation responsibilities faster than anticipated– and it might lack procedures as early as June 1.
Media reports recently pointed out a Treasury authorities who stated her journey to Japan will be interrupted to make certain she can continue participating in efforts to attend to the financial obligation ceiling concern.
She informed reporters on Thursday, “Another meeting is scheduled for next Friday and staff ar working to see if they can resolve this, so I’m very hopeful the differences can be bridged and the debt ceiling will be raised.”