According to US Treasury Secretary Jannet Yellen, a default in the country may trigger a global financial crisis.
She is concerned that the default will send the United States into a recession and spur a chain reaction in a number of other countries. The world will face a global financial catastrophe that will take a lot of time and effort to tackle.
The Treasury Secretary is also preoccupied with transaction difficulties in the country as they may downgrade the US federal government credit rating. That would undermine the greenback’s global dominance, Janet Yellen stressed.
On January 19, the US Department of Treasury initiated extraordinary measures to avoid a default after the public debt hit a record of $31.4 trillion. The nation's total public debt outstanding is currently at $31.38 trillion.
Earlier, the Biden administration refused to discuss the possibility of raising the debt limit with Congress. In December 2022, US Representative Marjorie Taylor Greene slammed the government for not caring about US taxpayers, saying they pay $1.5 billion every month while approximately $6.4 billion a day is added to the $31 trillion debt.
