Yellen Warns Congress of 'Economic Recession' if Debt Ceiling Isn't Raised

U.S. Treasury Secretary Janet Yellen on Tuesday told House Speaker Nancy Pelosi that members of Congress have until Oct. 18 to vote on raising or suspending the debt ceiling. She said the Treasury "would be left with very limited resources that would be depleted quickly” if that deadline isn't reached, warning that it's “uncertain whether we could continue to meet all the nation’s commitments after that date.” America would default on the national debt for the first time in history, which Yellen said would lead to "a financial crisis and economic recession." Yellen’s letter was sent just hours after Senate Republicans on Monday voted against a measure to suspend the debt ceiling, arguing that it would enable more purportedly reckless spending from Democrats. The Bipartisan Policy Center recently estimated that the Treasury will run out of cash between Oct. 15 and Nov. 4; a report from Moody’s Analytics said a default could cause 6 million lost jobs and $15 trillion of lost household wealth.

Yellen's comments were prominently covered across the spectrum. Left-rated outlets were more likely to emphasize how the Republican Party could avoid this potential "catastrophic" default. Right-rated outlets were more likely to highlight how Congress has "already passed" several COVID-19-related stimulus packages that are worth trillions of dollars; one voice argued that "the real problem" is the Democratic Party's support for some of the “biggest, most reckless spending social bills in U.S. history.”