Yellen warns of chaos if debt ceiling not raised.

Treasury Secretary Janet Yellen Warns of Economic Downturn if Debt Ceiling Isn’t Raised

What You Need to Know:

• Treasury Secretary Janet Yellen warns that failure to raise the debt ceiling will cause a “steep economic downturn” in the U.S.
• The Treasury Department may run out of measures to pay its debt obligations by June.
• Yellen urges Congress to take action to avoid “economic calamity.”
• President Joe Biden has called a meeting with congressional leaders to discuss the debt limit.

Treasury Secretary Janet Yellen has issued a dire warning that failure to raise the debt ceiling will cause a “steep economic downturn” in the U.S. She has urged Congress to take action to avoid “economic calamity” as the Treasury Department may run out of measures to pay its debt obligations by June.

Yellen has called for decisive action, and quickly. President Joe Biden has organized a meeting with congressional leaders to discuss the debt limit, which has been described as “very important” by House Democratic Leader Hakeem Jeffries. However, Sen. James Lankford, R-Okla., has criticized President Biden’s refusal to negotiate, stating that the issue was raised the week after the election in November.

It’s clear that action needs to be taken to avoid a potential economic crisis. Let’s hope that Congress can come to a resolution before it’s too late.

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