Chancellor of the Exchequer , Janet Yellen, urged Congress on Wednesday to raise or suspend the federal debt limit as soon as possible, warning that if lawmakers do not take action United State You may face serious default risk in August.
“I think defaulting on the national debt is unimaginable,” he said. softens In his testimony before the Subcommittee on Appropriations Senate. “Not raising the debt limit will have very dire economic consequences.”
softens He said that to avoid uncertainty in financial markets, the Congress New legislation on debt limit should be passed, allowing Treasury Department Keep borrowing before the last hold expires on July 31.
In the past, it was treasure Avoid potential non-compliance for several months by using exceptional measures such as suspending contributions to pension funds for government employees, but spending on assistance programs COVID-19 It has added uncertainty to government cash flows.
These measures can be exhausted in August, when Congress He said, take your traditional summer vacation softens.