Yellen & Powell Testify: ‘Failure to Raise Debt Ceiling Will Trigger Financial Crisis, Calamity’

• Kitco NEWS
  If the debt ceiling is not raised in time, the U.S. will default, which would trigger a financial crisis and undermine the U.S. dollar, U.S. Treasury Secretary Janet Yellen told the U.S. Senate on Tuesday. A U.S. default would also undermine the confidence in the U.S. government, Yellen added, urging U.S. lawmakers to act now. Federal Reserve Chair Jerome Powell also testified alongside Yellen, telling the Committee on Banking, Housing, and Urban Affairs that if the debt ceiling is not raised, potential consequences could be “severe.” Powell was also grilled on inflation, Fed’s maximum employment goals, and the recovery progress.

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