Americans warned of financial ‘catastrophe

Sharing is Caring!

The country faces a recession if it defaults on its debt, the Treasury secretary has said

US Treasury Secretary Janet Yellen on Saturday warned of dire consequences the country may be facing if it doesn’t hike its statutory debt ceiling in the coming months. According to the senior official, the US could default on its debt by summer, which would lead to a financial crisis.

“It makes me nervous…It would be devastating. It’s a catastrophe,” Yellen told Axios news outlet, adding that “we’ll have a financial crisis and I believe we would have recession in the United States.”

See also  Most Americans Fear Expressing Political, Religious Views At Work

“Spending would have to decline to match the tax revenues,” Yellen said, which would strip the government of the ability to support the economy with stimulus. Furthermore, “psychological consequences” like people fearing to spend money could then “further impact spending and deepen a recession”.

www.rt.com/business/570641-us-warning-financial-catastrophe/

Trending:
See also  Financial Markets are breaking down...

Views: 529

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.