Yellen and Goldman Sachs Sound the Alarm on Impending U.S. Default
U.S. Treasury Secretary Janet Yellen and Goldman Sachs have been ringing the alarm bells about a potential U.S. default. Yellen emphasized that June 1 is a “hard deadline” for the risk of default, while Goldman Sachs estimated it’s more like June 8-9.
During an interview, Yellen expressed her concerns and mentioned that the U.S. might not be able to pay all its bills as early as June 1. She did mention the possibility of some tax payments on June 15, but her outlook for reaching that date without breaching the debt ceiling was not so optimistic.
As for possible solutions, Yellen ruled out the use of the 14th Amendment and expressed her hope that Congress would raise the debt ceiling.
Goldman Sachs chimed in, urging Congress not to wait until the last minute to address the issue. Their chief political economist estimated that the real deadline for default is around June 8-9, which poses a significant risk.
The Congressional Budget Office (CBO) also warned about the potential default in the first two weeks of June, adding to the growing concerns.
Many are sounding the alarm on the catastrophic consequences of a U.S. default, including a global financial crisis and the risk of losing the dollar’s reserve currency status. With top executives of major companies urging swift action from Biden and Congress, the pressure is on to prevent this financial disaster.
Clever Robot News Desk 24th May 2023