Yellen says it should be ‘unimaginable’ for the US to default on its debt


US Treasury Secretary Janet Yellen during a press conference at the Group of Seven (G-7) finance ministers and central bank governors meeting in Niigata, Japan, Thursday, May 11, 2023.

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Treasury Secretary Janet Yellen said the idea of ​​US lawmakers allowing the nation to default on its debt should be “unimaginable”.

Speaking to reporters ahead of a meeting of G-7 finance ministers and central bank governors in Niigata, Japan, Yellen said she was aware of this. Advice from former President Donald Trump Letting the nation default to Republican lawmakers.

He told reporters, “The notion of defaulting on our debt is something that would undermine the US and the global economy so badly that I think it should be considered unimaginable by everybody.” “America should never default.”

Asked about steps the Biden administration could take in the wake of the default, Yellen insisted lawmakers should raise the debt ceiling.

“There is no one good option that will save us from catastrophe. I don’t want to get into a ranking of which bad option is better than others, but the only reasonable thing to do is to raise the debt limit and avoid the dire consequences that follow.” be saved.” , ” she told reporters, noting that defaults on loans could be prevented.

“There is no good reason to create a crisis of our own making,” he said. The US Congress has raised or suspended the debt ceiling nearly 80 times since 1960. I would be quick to do so once again. I urge you to act.”

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they are followed by Yellen’s remarks Warned of “economic catastrophe” If the US fails to raise its debt ceiling in the coming weeks. she has also first warned That the US may fail to meet its debt obligations earlier than expected – and it could run out of measures as early as June 1.

Media reports last week cited a Treasury official who said his trip to Japan would be scaled down to ensure he could continue to participate in efforts to resolve the debt ceiling issue.

She told reporters on Thursday, “There is another meeting scheduled for next Friday and staff are working to see if they can resolve this, so I am very hopeful that the differences can be ironed out and The loan limit will be increased.

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