{"id":1930865,"date":"2023-05-14T22:41:00","date_gmt":"2023-05-15T02:41:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-has-to-default-on-something-if-debt-ceiling-isnt-raised-before-deadline-yellen\/"},"modified":"2023-05-14T22:43:57","modified_gmt":"2023-05-15T02:43:57","slug":"us-has-to-default-on-something-if-debt-ceiling-isnt-raised-before-deadline-yellen","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-has-to-default-on-something-if-debt-ceiling-isnt-raised-before-deadline-yellen\/","title":{"rendered":"Yellen: US must default if debt ceiling not raised by deadline."},"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\">22<\/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%2Fus-has-to-default-on-something-if-debt-ceiling-isnt-raised-before-deadline-yellen%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=1930865&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>U.S. Government May Default on Payments Without Debt Ceiling Increase<\/h2>\n<h3>Treasury Secretary Janet Yellen Warns of Credit Downgrade<\/h3>\n<p>The U.S. government may have to default on some payments if Congress fails to raise the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bipartisan-lawmakers-target-wasteful-government-spending-amid-debt-limit-stalemate\/\" title=\"Bipartisan Lawmakers Target \u2018Wasteful\u2019 Government Spending Amid Debt Limit Stalemate\">national debt ceiling<\/a> before June, according to Treasury Secretary Janet Yellen. In an interview with Bloomberg, Yellen stated that failure to raise the debt ceiling would impair the country&#8217;s credit rating and force it to default on obligations, including payments to Social Security recipients and Treasuries. <\/p>\n<p>Yellen emphasized that the U.S. has not defaulted on payments since 1789 and should not start now. She also dismissed speculation that her department would prioritize payments of interest and principal on Treasury securities in a default scenario, stating that the White House has never reviewed or approved such a plan.<\/p>\n<p>The Treasury Secretary warned that a U.S. government default might trigger a downgrade of its credit rating and <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.\">weaken consumer confidence<\/a>, similar to what happened in 2011. She pointed to the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/signs-of-stress-start-to-build-in-markets-as-debt-ceiling-deadline-looms\/\" title=\"Market stress builds as debt ceiling deadline approaches.\">2011 debt ceiling crisis<\/a> that prompted Standard &#038; Poor\u2019s to lower the United States\u2019 long-held top-notch AAA sovereign credit rating to AA-plus. Another downgrade would drive up interest rates for consumers and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-has-to-default-on-something-if-debt-ceiling-isnt-raised-before-deadline-yellen\/\" title=\"Yellen: US must default if debt ceiling not raised by deadline.\">companies seeking loans<\/a>, potentially leading to a global downturn.<\/p>\n<p>Yellen urged Congress to act quickly to raise or suspend the debt limit, which has been done about 80 times since 1960. Failure to do so would threaten the gains made in the pandemic recovery and undermine U.S. global economic leadership. It would also raise questions about the country&#8217;s ability to defend its national security interests.<\/p>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li>The U.S. government may default on payments if Congress fails to raise the national debt ceiling before June.<\/li>\n<li>Treasury Secretary Janet Yellen warns that a default could trigger a credit downgrade and weaken consumer confidence.<\/li>\n<li>A downgrade would drive up interest rates for consumers and companies seeking loans, potentially leading to a global downturn.<\/li>\n<li>Yellen urges Congress to act quickly to raise or suspend the debt limit to avoid a default.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. government will have to default on some payments if Congress fails to raise the national debt ceiling before June, Treasury Secretary Janet Yellen said. \u201cIf Congress fails to do that, it really impairs our credit rating. We have to default on some obligation, whether it\u2019s Treasuries or payments to Social Security recipients,\u201d Yellen<\/p>\n","protected":false},"author":392,"featured_media":1930866,"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":[10142,15402,5487,15651,4959,5286],"class_list":["post-1930865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-ceiling","tag-deadline","tag-debt","tag-default","tag-raised","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\/1930865","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\/392"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1930865"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1930865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1930866"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1930865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1930865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1930865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}