Treasury Secretary Janet Yellen said Tuesday that the United States would fall into another recession if Congress did not address debt restrictions.
In an interview with CNBC, Yellen said the failure of Congress’s actions was “catastrophic.”
“It’s very important to do this,” Yellen said. She called October 18th the “deadline.”
Senate leader Chuck Schumer is trying again to pass a bill in the Senate to address debt restrictions, but strong Republican opposition causes Democrats to consider using special “reconciliation” measures. Have been forced.
The Treasury has rejected the highlighted idea that the government will coin $ 1 trillion to repay some of its debt.
She said it was the equivalent of “asking the Federal Reserve to print money to cover deficits that Congress didn’t want to cover.”
She said the move jeopardized the Fed’s independence and showed that Congress and the government couldn’t expect to pay the country’s bill.
Inflationary pressures are “temporary, but that doesn’t mean they will go away in the coming months,” Yellen said of the economy.
“I believe the Fed will make the right decision,” she said.
Yellen said President Joe Biden has not yet decided whether to give Federal Reserve Chairman Jerome Powell a second term when his term expires in February next year.
“I know he talks to many people, considers a wide range of evidence and opinions, and makes very careful decisions,” Yellen said.
As the debt cap on October 18 approaches, Wall Street is beginning to raise concerns.stock
Debt cap concerns were set to open higher on Tuesday after lowering the index on Monday.
Yellen says the U.S. will fall into recession if Congress does not act on debt limits
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