May 7 (Reuters) – U.S. Treasury Secretary Janet Yellen warned Congress again on Sunday of a “constitutional crisis”, with consequences for financial markets and interest rates, if it does not affect the debt ceiling.
Debt ceiling negotiations shouldn’t be done “with a gun to the head of the American people,” Janet Yellen said in an interview on ABC News’ “This Week.”
Without increasing the debt ceiling, reached in January, the government will only be able to pay its bills until the beginning of June, she reiterated to the attention of Congress.
Deputy Treasury Secretary Wally Adeyemo also sounded the alarm on Sunday about the risk of a default in an interview with MSNBC’s “The Sunday Show”.
“A default would be catastrophic for the United States,” he said. “If we were to default on our debt, it would have a terrible impact on interest rates.”
US President Joe Biden is due to meet with key congressional officials, Democrats and Republicans, on June 9 at the White House to discuss the federal budget and spending.
(Reporting by John Kruzel, French version by Kate Entringer)
2023-05-07 14:32:33
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