The head of the US Treasury, Janet Yellen, on the air of the ABC channel, predicted an economic catastrophe for the country on one condition. According to her, a serious financial crisis will come if the ceiling of the state debt is not raised. TASS…
The minister noted that this is necessary not to cover new costs, but to ensure funding for previous initiatives of the Congress, and if this body does not make a decision by December, the consequences could be very serious, because there is “too much” at stake.
“The status of the securities of the Ministry of Finance, the most reliable asset in the world, will be undermined, as well as the dollar as the world’s reserve currency. Failure to raise the borrowing limit is likely to trigger a recession and even lead to a financial crisis. It would be a disaster, ”Yellen said.
Earlier, the leader of the Democratic majority in the US Senate, Chuck Schumer, said that the parties had entered into an agreement to increase the ceiling of public debt by 480 billion dollars. According to the Ministry of Finance, the decision will be valid until December 3. This step allowed the United States to prevent the country’s first national debt default.
On December 8, the US Senate passed a vote on the bill. 50 senators voted for its adoption, 48 opposed it. The document allows to raise the ceiling of the national debt until December 3, while negotiations are underway between the Republican and Democratic parties.