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Tags: janet yellen | u.s. debt default | financial markets

Yellen: US Default Would Cause 'Worldwide Panic, Runs'

Yellen: US Default Would Cause 'Worldwide Panic, Runs'
U.S. Secretary of the Treasury Janet Yellen at a G7 Finance Ministers meeting in Niigata City, Japan, May 13, 2023 (AP)

Tuesday, 16 May 2023 09:19 AM EDT

Treasury Secretary Janet Yellen Tuesday warned that a U.S. default on government debt would leave millions of Americans without income payments, potentially triggering a recession that destroys many American jobs and businesses.

Yellen told a gathering of community bankers that the unprecedented economic and financial crisis would be exacerbated by possible disruptions to the federal government’s operations, including air traffic control, law enforcement, border security and national defense, and telecommunications systems.

She said the accompanying financial crisis could multiply the severity of the downturn, adding, "It is very conceivable that we'd see a number of financial markets break — with worldwide panic triggering margin calls, runs and fire sales."

© 2023 Thomson/Reuters. All rights reserved.


StreetTalk
Treasury Secretary Janet Yellen Tuesday warned that a U.S. default on government debt would leave millions of Americans without income payments, potentially triggering a recession that destroys many American jobs and businesses.
janet yellen, u.s. debt default, financial markets
108
2023-19-16
Tuesday, 16 May 2023 09:19 AM
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