Treasury Secretary Janet Yellen has said to the public in a news statement on Tuesday that she believes that the economy of the United States will definitely and go down and we would fall into a recession. This will however only happen if Congress fails to address the federal government’s borrowing limit and the United States debt.
“I do regard that we have a deadline and that it is very appropriate to say that October 18 is the deadline. It goes without saying that it would be catastrophic to not pay the government’s bills. It is true that in the end, it would be for us to be in a position where we lacked the resources to pay the government’s bills,” Yellen said during an interview on the news.
President Joe Biden called up out a meeting on Monday where he called on Congress to raise the debt limit this week. The fact that he did this was to avoid the even approaching near-certain economic turmoil.
He was very clear in his words and he openly blamed the Republicans and Senate Minority Leader Mitch McConnell, R-Ky, for being the one responsible and standing in the way of legislation.
“I fully expect it would cause a recession as well,” Yellen added on Tuesday.
The Treasury secretary has been known to have to work a lot to make sure that there is a smooth over in the rough matters but you can not control the actions of others and stop the inevitable as the situation goes on.
It has been for weeks Where the secretary had warned House Speaker Nancy Pelosi, D-Calif., and Senate Majority Leader Chuck Schumer, D-N.Y. The US will no longer go to able to honor its debt. This is something that is needed to be taken care of immediately. The failure to do so will only be the cause of the recession.
At present they are now using emergency methods to pay down the debts and the receipts but that is only a temporary measure for the government. That is all that there is to it. We will keep you updated on what the government does next. So keep your eyes on the news. Thank you very much.