{"id":1928949,"date":"2023-05-11T12:40:22","date_gmt":"2023-05-11T16:40:22","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-says-congress-risks-creating-a-self-made-crisis-with-unthinkable-debt-default\/"},"modified":"2023-05-11T12:43:25","modified_gmt":"2023-05-11T16:43:25","slug":"yellen-says-congress-risks-creating-a-self-made-crisis-with-unthinkable-debt-default","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-says-congress-risks-creating-a-self-made-crisis-with-unthinkable-debt-default\/","title":{"rendered":"Yellen warns of self-made crisis with debt default."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fyellen-says-congress-risks-creating-a-self-made-crisis-with-unthinkable-debt-default%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1928949&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Treasury Secretary Yellen Urges Congress to Raise Debt Ceiling<\/h2>\n<h3>Self-Made Crisis<\/h3>\n<p>Treasury Secretary Janet Yellen has accused the Republican-controlled House of creating a self<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/rubio-scott-introduce-bill-targeting-venezuelas-maduro\/\" title=\"Rubio, Scott Introduce Bill Targeting Venezuela\u2019s Maduro\">-made crisis<\/a> over its stance on the debt ceiling. Speaking at a Group of Seven (G7) conference in Niigata, Japan, Yellen called on Congress to raise the $31.<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/yellen-says-congress-risks-creating-a-self-made-crisis-with-unthinkable-debt-default\/\" title=\"Yellen warns of self-made crisis with debt default.\">4 trillion federal <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/moderate-democrats-white-house-resist-calls-to-eliminate-filibuster\/\" title=\"Moderate Democrats, White House resist calls to eliminate filibuster\">debt limit<\/a><\/a> to avert a U.S. government default that would trigger a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russias-war-is-coming-for-the-u-s-economy\/\" title=\"Russia\u2019s War Is Coming for the U.S. Economy\">global economic crisis<\/a> and undermine the strength of the world\u2019s largest economy.<\/p>\n<h3>Impending Default<\/h3>\n<p>The Treasury Department has warned that the U.S. government could default as soon as June 1 without a deal. \u201cA default would threaten the gains that we\u2019ve worked so hard to make over the past few years in our pandemic recovery. And it would spark a global downturn that would set us back much further,\u201d said Yellen. <\/p>\n<h3>Biden Meets with GOP Leaders to Negotiate Over Debt Limit<\/h3>\n<p>President Joe Biden met with top Republican and Democrat legislators on May 9 to resolve the three-month standoff over the debt limit. After what Biden called a \u201cproductive\u201d meeting, both parties agreed to meet again on May 12 to solve the impasse before the June 1 deadline. <\/p>\n<h3>White House Considers Invoking 14th Amendment<\/h3>\n<p>The White House has discussed invoking the 14th Amendment of the U.S. Constitution to push through a ceiling hike, as it states that the \u201cvalidity of the public debt of the United States, authorized by law \u2026 shall not be questioned.\u201d That move may give the administration a way to issue the debt needed to pay the off government\u2019s bills and ignore Congress over the debt ceiling. However, Yellen said that circumventing Congress was not a short-run solution and that it appears \u201clegally questionable whether that\u2019s a viable strategy.\u201d<\/p>\n<h3>Implications of Default<\/h3>\n<p>Yellen warned that the threat of a default would lead to a downgrade of the government\u2019s credit rating and weaken consumer confidence, similar to what happened during the last battle over the debt ceiling in 2011. \u201cWe could see a rise in interest rates drive up payments on mortgages, auto loans, and credit cards. We are already seeing spikes in interest rates for debt due around the date that the debt limit may bind,\u201d she said. Yellen also called U.S. Treasury securities the most valuable assets in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/not-worth-the-paper-it-is-written-on-here-are-the-problems-with-bidens-global-minimum-tax\/\" title=\"\u2018Not Worth The Paper It Is Written On\u2019: Here Are The Problems With Biden\u2019s \u2018Global Minimum Tax\u2019\">global financial markets<\/a>, and that a U.S. default would cause a loss of confidence, leading to a worldwide depression.<\/p>\n<h3>Call for Changes to Fiscal Policy<\/h3>\n<p>Yellen added that the crisis highlights the need for changes to fiscal policy. House Speaker Kevin McCarthy (R-Calif.) called for trillions of dollars in spending cuts over the next decade in return for an increase, which Biden has resisted. Yellen said that the current situation is a \u201ccrisis of our own making\u201d and that it is time for Congress to act. <\/p>\n<h3>What\u2019s Next?<\/h3>\n<p>The clock is ticking, and the U.S. government is edging closer to default. It remains to be seen whether Congress will act in time to raise the debt ceiling and avert a global economic crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury Secretary Janet Yellen accused the Republican-controlled House of creating a self-made crisis over its stance on the debt ceiling. Yellen, who was attending a Group of Seven (G7) conference in Niigata, Japan, called on Congress to raise the $31.4 trillion federal debt limit to avert a U.S. government default that would trigger a global<\/p>\n","protected":false},"author":327,"featured_media":1928950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[6170,5487,15651,26478,3633,5286],"class_list":["post-1928949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-crisis","tag-debt","tag-default","tag-self-made","tag-warns","tag-yellen"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1928949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/327"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1928949"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1928949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1928950"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1928949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1928949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1928949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}