Center for American Progress

RELEASE: Default Would Have a Catastrophic Impact on the Economy
Press Release

RELEASE: Default Would Have a Catastrophic Impact on the Economy

Washington, D.C. — The United States could face default potentially as early as June 1, 2023 if Congress fails to take action to raise, suspend, or eliminate the debt limit. A new Center for American Progress article reviews the potential immediate and long-lasting harm to the economy that would result should Congress fail to act.

Default—or even a close brush with default—would have a devastating impact on the U.S. economy and the global financial system. Likely consequences of default include massive job loss; a sharp rise in interest rates; raising costs for families, business, and federal borrowing; and delays benefits and services Americans rely on. Default would also have far reaching economic and foreign policy ramifications; undermining confidence in the dollar as the basis for global trade; and battering supply chains struggling to recover from the COVID-19 pandemic

“Business leaders and economists across the ideological spectrum agree that even a close brush with default could be catastrophic and undermine recent economic progress” said Jean Ross, senior fellow and author of the article. “Default itself could lead to a global recession as deep as that caused by the financial crisis.” 

Read the column: “Default would have a catastrophic impact on the economy” by Jean Ross 

For more information or to speak with an expert, please contact Sarah Nadeau at

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.