Treasury Secretary Janet Yellen thinks if the government’s debt ceiling is not raised any time soon, it could have a devastating impact on investments, mortgage payments, and credit card interest rates. Speaking before the National Association of Counties’ annual legislative conference, Yellen noted that “Since 1789, the United States has paid all our bills on time. It should stay that way.” Yellen asserted that a “default on our debt would produce an economic and financial catastrophe,” noting not only that people could lose jobs, but that “household payments on mortgages, auto loans, and credits cards would rise, and American businesses would see credit markets deteriorate.” The Treasury Secretary added that on top of such possible economic calamities, a failure to raise the debt limit would make it “unlikely that the federal government would be able to issue payments to millions of Americans, including our military families and seniors who rely on Social Security.” All such dire consequences could be avoided, Yellen said, by Congress voting to “raise or suspend the debt limit.” “It should do so without conditions,” she continued. “And it should not wait until the last minute.” Negotiations are currently underway between the White House and Congressional leaders regarding the possibility of raising the debt ceiling and what, if any, government programs would be reduced or limited in reaching that goal. By Garry Boulard
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