In a Nov. 16 letter to Congress, Treasury Secretary Janet Yellen wrote that there is “a high degree of confidence that Treasury will be able to finance the U.S. government through Dec. 15,” but beyond that “there are scenarios in which Treasury would be left with insufficient remaining resources to continue to finance the operations of the U.S. government.”
This follows earlier statements in which Secretary Yellen noted that leaving the debt ceiling unaddressed “can cause serious harm to business and consumer confidence, raise borrowing costs for taxpayers, and negatively impact the credit rating of the United States for years to come,” and that after hitting the debt limit, the country “would likely face a financial crisis and economic recession.”
The above excerpt was originally published in American Banker.
Click here to view the full article.