July 25, 2021 19:36 PM
U.S. Secretary of the Treasury Yellen
U.S. Treasury Secretary Janet Yellen sent a letter to a number of congressional leaders on July 23, local time, urging Congress to raise or suspend the federal debt ceiling as soon as possible, otherwise it will “cause irreparable damage to the U.S. economy and American livelihoods.” “.
Yellen warned that if Congress cannot raise or suspend the debt ceiling before August 1, the Treasury Department will not be able to predict how long it can avoid potential national debt defaults, and the United States may not be able to pay the government’s debt in full and on time. And cause catastrophic consequences.
Yellen said that just facing the risk of national debt default may damage the country’s financial situation. She cited the decision of international rating agencies to downgrade the US credit rating during the debt ceiling deadlock in 2011. It is reported that the Ministry of Finance has taken extraordinary measures to avoid defaults, but Yellen pointed out that the difficulties caused by the new crown epidemic have restricted the efforts of the Ministry of Finance. Earlier, the U.S. Congressional Budget Office stated that unless the U.S. Congress raises or suspends the debt ceiling, the United States may default on debt in October or November this year.
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