Yellen Urges Congress to Raise or Suspend Debt Ceiling
Headline Roundup September 8th, 2021
Treasury Secretary Janet Yellen urged House Speaker Nancy Pelosi to raise or suspend the debt ceiling as soon as possible on Wednesday, warning that inaction could lead to a historic default in October. “A delay that calls into question the federal government’s ability to meet all its obligations would likely cause irreparable damage to the U.S. economy and global financial markets,” Yellen said. The debt ceiling was suspended in 2019 until July 2021, and the Treasury has since taken “extraordinary measures” to raise funds without issuing new debt; Yellen said those measures will expire in October. While promising to explore multiple options to raise the debt ceiling, Pelosi said she would not include such legislation in Democrats' $3.5 trillion budget reconciliation bill. Thus, a debt ceiling bill could require the support of at least 10 Senate Republicans, at least 46 of whom have signed a pledge not to contribute to Democrats’ efforts to raise the cap.
Coverage was most prominent in center-rated outlets, particularly those focused on business and D.C. politics. Coverage of Yellen’s remarks came among several related stories on the negotiations surrounding Democrats’ budget reconciliation bill.
Treasury Secretary Janet Yellen on Wednesday warned House Speaker Nancy Pelosi that the mere specter of a U.S. default can have drastic consequences for U.S. financial markets and urged Democratic leadership to raise or suspend the debt ceiling as soon as possible.
Yellen reiterated that lawmakers have until some point in October before the department exhausts its extended efforts to prevent what would be a historic default.
“A delay that calls into question the federal government’s ability to meet all its obligations would likely cause irreparable damage to the U.S....
Treasury Secretary Janet Yellen warned congressional leaders Wednesday that the U.S. is on track to default on its debt sometime in October if Congress fails to raise the debt ceiling.
Yellen said the Treasury would likely run out of cash in the coming weeks and exhaust its “extraordinary” spending measures to keep the country within its legal borrowing limit.
“Once all available measures and cash on hand are fully exhausted, the United States of America would be unable to meet its obligations for the first time in our history,” Yellen...
The United States could default on its debt sometime in October if Congress does not take action to raise or suspend the debt limit, Treasury Secretary Janet L. Yellen warned on Wednesday.
The “extraordinary measures” that the Treasury Department has been employing to finance the government on a temporary basis since Aug. 1 will be exhausted next month, Ms. Yellen said in a letter to lawmakers. She added that the exact timing remained unclear but that time to avert an economic catastrophe was running out.