You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Yellen renews call to raise US debt limit to avoid ‘catastrophe’

Or face government running out of money to pay its bills sometime in October.
Janet Yellen. Image: Shawn Thew/EPA/Bloomberg

Treasury Secretary Janet Yellen renewed her call for Congress to raise or suspend the US debt ceiling, saying the government will otherwise run out of money to pay its bills sometime in October.

Writing in a Wall Street Journal op-ed, Yellen said “the overwhelming consensus among economists and Treasury officials of both parties is that failing to raise the debt limit would produce widespread economic catastrophe.”

The US House will vote next week on raising the nation’s $28 trillion debt ceiling amid a standoff between Democrats and Republicans that still threatens to send the country into a payments default next month.

A US default “would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency,” throw the US into recession and leave it a “permanently weaker nation,” she said.

“Neither delay nor default is tolerable” and lawmakers must act quickly, Yellen added.

Senate Minority Leader Mitch McConnell has rejected an appeal by Yellen for Republicans to join with Democrats in raising the federal debt ceiling, leaving the two sides at odds with potentially weeks to go until the limit is breached.

© 2021 Bloomberg

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

Each year the ceiling is lifted. Seems like a third-world country to me

Countries around the world are rapped across the knuckles about their Debt to GDP ratios and their lending rates are set accordingly, but the US government debt to GDP is at 133.6% (www.ceicdata.com @ March 2021). They are hardly the paragon of fiscal responsibility and do not deserve their status as reserve currency.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles:
Click a Company: