Yellen Warns Congress of 'Economic Recession' if Debt Ceiling Isn't Raised
Summary from the AllSides News Team
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.”
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From the Right
Federal Government Will Run Out of Cash on Oct. 18 If Debt Ceiling Isn’t Raised: Treasury SecretaryTreasury Secretary Janet Yellen on Tuesday warned members of Congress that the United States’ cash reserves will likely be exhausted unless lawmakers vote to raise or suspend the debt ceiling by Oct. 18, warning that it’s not clear if the United States would be able to meet all of its financial obligations if no deal is passed by then.
If that deadline is reached, “we expect Treasury would be left with very limited resources that would be depleted quickly,” Yellen warned, adding that it is “uncertain whether we could continue to meet...
From the Left
Yellen tells Congress that U.S. will run out of debt ceiling flexibility on Oct. 18Treasury Secretary Janet Yellen on Tuesday told Congress that the U.S. will run out of flexibility to avoid breaching the debt limit on Oct. 18, setting a new deadline for lawmakers to avoid a catastrophic default on its payment obligations.
“It is uncertain whether we could continue to meet all the nation’s commitments after that date,” Yellen wrote in the letter to House Speaker Nancy Pelosi (D-Calif.).
Yellen’s letter came less than 24 hours after Senate Republicans blocked a bill that would suspend the debt ceiling and prevent a government shutdown on Friday. Senate...
From the Center
Yellen warns lawmakers U.S. Treasury to hit debt limit Oct. 18U.S. Treasury Secretary Janet Yellen on Tuesday again warned lawmakers that the nation was close to exhausting its federal borrowing capabilities - now set for Oct. 18 - and urged Congress to act in order to avert “serious harm” to the economy.
“At that point, we expect Treasury would be left with very limited resources that would be depleted quickly,” she wrote in her latest letter to congressional leaders.
“It is uncertain whether we could continue to meet all the nation’s commitments after that date,” she added in the letter,...
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