"What to do if Congress fails to meet its responsibility? There are simply no good options, and the ones that you've listed are among the not good options," Yellen told ABC "This Week" anchor George Stephanopoulos when pressed on whether the Biden administration was considering using the 14th Amendment, which states that the public debt "shall not be questioned."
"But it didn't seem like he took it off the table. So, is it still a possibility?" Stephanopoulos asked Yellen on Sunday."Our priority is to make sure that Congress does its job," she said. "There is no way to protect our financial system in our economy other than Congress doing its job and raising the debt ceiling and enabling us to pay our bills. And we should not get to the point where we need to consider whether the president can go on issuing debt.
Treasury Secretary Janet Yellen speaks during a news conference at the Treasury Department in Washington, D.C., April 11, 2023.The treasury secretary echoed the president's position: that the debt ceiling should not be used as leverage as part of Republicans' negotiations with the White House over the budget.
"This would be really the first time in the history of America that we would fail to make payments that are due," Yellen said. "And whether it's defaulting on interest payments that are due on the debt or payments due for Social Security recipients or to Medicare providers, we would simply not have enough cash to meet all of our obligations. And it's widely agreed that financial and economic chaos would ensue.
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