Yellen: ‘No good options’ if Congress fails to act on debt

WASHINGTON — Treasury Secretary Janet Yellen said Sunday that there are “no good options” for the United States to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit of $31.381 trillion in the coming weeks. She did not rule out President Joe Biden bypassing lawmakers and acting on his own to try to avert a first-ever federal default.

Yellen, interviewed on ABC’s “This Week,” painted a dire picture of what might happen if the borrowing limit is not increased before the Treasury Department runs out of what it calls “extraordinary measures” to operate under the current cap. That time, she said, is expected to come in early June, perhaps as soon as June 1.

Biden’s White House meeting with McCarthy, House Minority Leader Hakeem Jeffries, D-N.Y., Senate Majority Leader Chuck Schumer, D-N.Y., and Senate Minority Leader Mitch McConnell, R-Ky., will be the first substantive talks between Biden and McCarthy in months. “There’s not going to be just a simple clean debt limit — the votes don’t exist for that,” she told CBS’s “Face the Nation.” “So the sooner these two guys get in the room and listen to what the other one needs, the more likely they are to solve this challenge and protect the full faith and credit of the United States of America.”

“What to do if Congress fails to meet its responsibility? There are simply no good options,” she added. The 14th Amendment question was studied by Obama administration lawyers during the 2011 debt limit showdown, which informed Biden’s refusal to negotiate now with Republicans on raising the debt limit. At the time, Justice Department lawyers said they did not believe the president had the unilateral power to issue new debt.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Yellen warns of 'constitutional crisis' if Congress fails to act on debt By Reuters*TREASURY SECRETARY YELLEN WARNS FAILURE OF CONGRESS TO ACT WILL CAUSE 'AN ECONOMIC AND FINANCIAL CATASTROPHE' 🇺🇸🇺🇸
Source: Investingcom - 🏆 450. / 53 Read more »

Yellen: ‘No good options’ if Congress fails to act on debtTreasury Secretary Janet Yellen said Sunday that there are “no good options” for the United States to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit of $31.381 trillion in the coming weeks. She did not rule out President Joe Biden bypassing lawmakers and acting on his own to try to avert a first-ever federal default.
Source: WashTimes - 🏆 235. / 63 Read more »

No good options if Congress fails to raise the debt limit, Yellen saysPresident Biden will meet with congressional leadership Tuesday to discuss raising the debt limit.
Source: politico - 🏆 381. / 59 Read more »

Yellen warns of 'constitutional crisis' if Congress fails to act on debtU.S. Treasury Secretary Janet Yellen on Sunday issued a stark warning that a failure by Congress to act on the debt ceiling could trigger a 'constitutional crisis' that also would call into question the federal government's creditworthiness.
Source: Reuters - 🏆 2. / 97 Read more »

Yellen says there are 'no good options' if Congress fails to act on debtTreasury Secretary Janet Yellen said Sunday that there are “no good options” for the United States to avoid an economic “calamity” if Congress fails to raise the nation’s borrowing limit.
Source: latimes - 🏆 11. / 82 Read more »

Yellen: ‘No good options’ if Congress fails to act on debtAn increase in the debt limit would not authorize new federal spending. It would only allow borrowing to pay for what Congress has already approved.
Source: FOX10News - 🏆 581. / 51 Read more »