Washington-Sana
US Treasury Secretary Janet Yellen warned that the United States may reach the public debt ceiling on December 15 again after Congress raised it temporarily in October to avoid the risk of default.
"The Treasury will find itself with insufficient resources to continue to fund the operations of the US government after December 15th, and therefore it is imperative that Congress raise or freeze the public debt ceiling as soon as possible to ensure full confidence in the United States and its creditworthiness.”
Yellen warned that a US default could unleash a new recession because if it reached the public debt ceiling, it could no longer borrow and when its liquidity dries up, it becomes in default.
In mid-October, Congress passed a bill raising the public debt ceiling by $480 billion in a temporary measure that spared the world's largest economic power the risk of falling for the first time in its history into the predicament of default.
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