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Janet Yellen says U.S. faces recession if Congress doesn’t act


Janet Yellen, U.S. Treasury secretary, spoke at a House Financial Services Committee hearing held in Washington, D.C., U.S.A, Thursday, September 30, 2021.

Sarah Silbiger | Bloomberg | Getty Images

Treasury Secretary Janet YellenTuesday’s statement by Ms. Smith was a warning that the U.S. will fall into recession if Congress doesn’t address the limit on borrowing before an unprecedented default on its debt.

“I do regard Oct. 18 as a deadline. It would be catastrophic if we didn’t pay the bills.

Joe Biden on Monday called on Congress to raiseThis week, the debt limit will be raised and we won’t see any economic panic. He blamed Republicans as well as Senator Minority Leader Mitch McConnell from Kentucky for blocking legislation to lift the borrowing caps through filibuster.

Tuesday’s comments by Yellen included, “I expect it to cause a recession also,”

Since weeks, Treasury Secretary Nancy Pelosi, D.Calif. and Senate Majority Leader Chuck Schumer D.N.Y. have warned that the U.S. won’t be able pay its Oct. 18 debts. To avoid the risk of the U.S. going into default, lawmakers must increase or suspend the debt limit before this date.

This is the latest news. Stay tuned for new updates.

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