Failure to raise the debt ceiling threatens the United States with default and catastrophic consequences for the economy. This was stated by the country’s Finance Minister Janet Yellen.
The debt ceiling is still frozen until July 31. If there are problems with its increase, the Ministry of Finance will be forced to take “extraordinary measures” to prevent a default, Yellen warned.
“I believe that this will exacerbate the financial crisis, put American jobs and savings at risk and this is at a time when we are still recovering from the pandemic,” she said, speaking about the default on the national debt. The minister called on Congress to take measures to raise the debt ceiling as soon as possible.
A new stimulus package for the American economy, which is being prepared by the administration of President Biden, could lead the country to a quasi-default, Russian billionaire Oleg Deripaska warned earlier. The businessman stressed that the US national debt is confidently approaching $ 30 trillion, and no one is preparing plans to reduce it yet.
Meanwhile, the International Monetary Fund (IMF) believes that the US economy will soar even higher after the end of the crisis than expected in forecasts before the pandemic.