Yellen warns of cash catastrophe

Janet Yellen renewed, Monday, her call for Congress to raise or suspend the nation’s debt before October.

The U. S. Treasury Secretary has warned that failure to do so may trigger an unprecedented financial crisis in the United States.
“The U.S. has always paid its bills on time,” Yellen wrote in a Wall Street Journal article.

“But the overwhelming consensus among economists and Treasury officials of both parties is that failing to raise the debt limit would produce widespread economic catastrophe”, she added.

The Treasury Department began the implemention of extraordinary measures aiming at keeping the government running after the debt limit restored around $22 trillion in August – about USD 6 trillion less than the existing level.
Yellen warned the Congress that the federal government could run out of cash to pay outstanding bills sometime in October 2021.