• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

‘Catastrophic economic consequences’ if debt ceiling not raised by Oct. 18

September 29, 2021
in Finance
Reading Time: 3 mins read
A A
0
‘Catastrophic economic consequences’ if debt ceiling not raised by Oct. 18
0
SHARES
11
VIEWS
ShareShareShareShareShare

The United States Congress has a deadline on paying its bills: October 18, 2021.

Secretary of the Treasury Janet Yellen said that if Congress does not raise the debt ceiling, the Treasury will run out of emergency funds to pay U.S. debt holders by that date.

“Failing to increase the debt limit would have catastrophic economic consequences,” Yellen told the Senate Banking Committee on Tuesday.

In August, a statutory limit on federal debt — called the debt ceiling — was reinstated, despite the need to continue financing pandemic-era spending authorized by both the Trump and Biden administrations.

[Read: What is the debt ceiling?]

With payments due on U.S. Treasury securities (which the Treasury issues to finance the government), the Treasury resorted to its cash reserves and “extraordinary measures” to pay the bills. Once those emergency tools are exhausted, the Treasury says it will fail to make its payments, risking an outright default.

Congress has had a history of avoiding a breach in the debt ceiling, often times supporting a change in the statutory limit on a bipartisan basis. Source: U.S. Office of Management and Budget, The Washington Post

Yellen told the Senate Banking Committee that default could disrupt the market for U.S. Treasuries, seen as one of the most liquid markets in the world.

“It would be a financial crisis and a calamity,” Yellen said.

Yellen detailed the Treasury’s estimates of an Oct. 18 date in a letter to U.S. House of Representatives Speaker Nancy Pelosi, which explained that variability in the government’s cash flows could make that date too early or too late. She urged Congress to move quickly on raising the debt limit.

Meanwhile, Senate Majority Leader Chuck Schumer started forming plans to lower the vote threshold for a vote on the debt limit. Senate rules typically require 60 votes to support such a measure, but Schumer hopes to lower that to a simple majority — which would make it easier for the Democrats to jam a vote through, given the 50-50 balance in the chamber.

Yellen appeared in front of the Senate Banking Committee alongside Fed Chairman Jerome Powell, who agreed that a government default would be disastrous.

“The potential effects could be severe,” Powell said Tuesday.

Brian Cheung is a reporter covering the Fed, economics, and banking for Yahoo Finance. You can follow him on Twitter @bcheungz.

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit


Credit: Source link

ShareTweetSendPinShare
Previous Post

Fantom And Orienbank Join Hands To Lead Tajikistan’s CBDC Efforts

Next Post

Busta Rhymes, Dungeon Dragon “Rawring” Again With The HUSL

Related Posts

Coinbase, Roblox, Sweetgreen, The Trade Desk, Wynn Resorts
Finance

Coinbase, Roblox, Sweetgreen, The Trade Desk, Wynn Resorts

August 10, 2022
3
MarineMax Expands Financial Flexibility with New Credit Facilities to Execute on Strategic Growth Opportunities
Finance

MarineMax Expands Financial Flexibility with New Credit Facilities to Execute on Strategic Growth Opportunities

August 9, 2022
5
Most Canadians cutting back on groceries, entertainment as inflation soars: Yahoo/Maru poll
Finance

Most Canadians cutting back on groceries, entertainment as inflation soars: Yahoo/Maru poll

August 9, 2022
4
LogicMark, Inc. To Report Second Quarter 2022 Financial Results on August 11, 2022, and Provide Corporate Update
Finance

LogicMark, Inc. To Report Second Quarter 2022 Financial Results on August 11, 2022, and Provide Corporate Update

August 9, 2022
5
How top-selling electric vehicles will be affected by new tax credit
Finance

How top-selling electric vehicles will be affected by new tax credit

August 9, 2022
7
Next Post
Busta Rhymes, Dungeon Dragon “Rawring” Again With The HUSL

Busta Rhymes, Dungeon Dragon “Rawring” Again With The HUSL

Recommended

Why isn’t the U.S SEC suing former Ripple CTO?

Why isn’t the U.S SEC suing former Ripple CTO?

July 12, 2022
7
We never completed WazirX acquisition

We never completed WazirX acquisition

August 6, 2022
7
Canada’s Aurora Cannabis to shut down a facility in Edmonton

Shapeways to Report Second Quarter 2022 Financial Results

August 4, 2022
6
Stablecoins and cryptos does not pose risk to the financial system

4 ways to accumulate crypto during the bear market

July 24, 2022
6
Tether’s circulating supply expands after nearly 3 months of reductions

Tether’s circulating supply expands after nearly 3 months of reductions

August 2, 2022
6
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Coinbase, Roblox, Sweetgreen, The Trade Desk, Wynn Resorts
  • Vitalik Outs Himself as Having Used Tornado Cash
  • Circle says freezing wallets went against its beliefs on an open internet

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?