Article written by Jihye Lee, via https://www.cnbc.com on 11 May 2023
Treasury Secretary Janet Yellen said the idea of U.S. lawmakers letting the nation default on its debt should be “unthinkable.”
Speaking to reporters ahead of the G-7 finance ministers and central bank governors meetings in Niigata, Japan, Yellen said she was aware of former President Donald Trump’s suggestion for Republican lawmakers to let the nation default.
“The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable,” she told reporters.
When asked about steps the Biden administration could take in the wake of a default, Yellen emphasized that lawmakers must raise the debt ceiling.
The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960.