While limited progress has been made in resolving the ongoing debt limit crisis in the US, a new warning came from US Treasury Secretary Janet Yellen regarding the default.
Yellen, who is in Japan for the G-7 meetings, stated that if the US does not solve the debt limit, a default that will occur may damage the country’s international leadership.
Yellen stated that a possible default would lead to an economic and financial disaster and could also put the country’s national security at risk. Yellen said the default could also have negative effects globally.
Biden also issued a default warning
While the negotiations on the resolution of the crisis were continuing in the USA, default warnings came from President Biden.
“Our economy goes into recession and our international reputation is severely damaged,” Biden said. made its assessment.
With less than a month to go before the federal government hits its $31.4 trillion debt limit and is short of cash, President Biden was invited to discuss the debt limit issue by Speaker of the U.S. House of Representatives Kevin McCarthy, House Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and He met Wednesday with Senate Minority Leader Mitch McConnell.
Biden, at the press conference held after the meeting, stated that the meeting was “productive” and that they would meet again on Friday.