Treasury Secretary Janet Yellen recently emphasized the importance of raising the U.S. debt ceiling, stating that the idea of defaulting on the nation’s debt should be considered “unthinkable.” This comes after former President Donald Trump suggested that Republican lawmakers should let the nation default. Yellen warned that defaulting on debt could result in an “economic catastrophe” that would undermine the U.S. and global economy.
The Need to Raise the Debt Ceiling
Yellen stressed that lawmakers must raise the debt ceiling to prevent catastrophic consequences. She stated that there is no good alternative that can save the U.S. from a financial crisis. While there have been media reports suggesting that Yellen’s trip to Japan will be cut short due to the debt ceiling issue, she remains hopeful that the differences can be bridged and the debt ceiling can be raised.
Preventing a Crisis
Yellen urged Congress to act quickly to raise the debt ceiling, noting that it has been raised or suspended almost 80 times since 1960. She emphasized that defaulting on debt can be prevented and that there is no good reason to generate a crisis of our own making. The consequences of defaulting on debt would be dreadful, and it is the responsibility of lawmakers to take action to avoid such a scenario.
In conclusion, Yellen’s comments serve as a warning about the potential consequences of failing to raise the U.S. debt ceiling. It is important for lawmakers to take action and prevent a financial crisis that could have devastating effects on the U.S. and the global economy.
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