Express HuntExpress Hunt
  • HOME
  • POLITICS
  • SPORTS
  • BRAND STORIES
  • ENTERTAINMENT
  • OPINION
Search
  • Advertise
© 2022 Express Hunt . All Rights Reserved.
Reading: US defaults on $31.46 trillion debt may lead to a global crisis said treasury chief of the states
Share
Notification Show More
Latest News
OM SHRI BHAKTI: The World’s First Devotional AI OTT Platform Ushers in a New Era of Spiritual Technology
July 18, 2025
Harshkumar Badheka Joins Hands with Mujtaba Aziz Naza for Upcoming Song, Will Also Direct
July 11, 2025
USDT Thunder International Ltd Ignites a Global Crypto Revolution with DeFi-Powered Wealth Ecosystem
July 4, 2025
Jogesh Mahal: Two Decades of Crafting Memories in Agartala
July 2, 2025
Shaping Destinies: How Bright Future Academy Became Agartala’s Beacon for Government Job Aspirants
July 2, 2025
Aa
Express HuntExpress Hunt
Aa
Search
  • HOME
  • POLITICS
  • SPORTS
  • BRAND STORIES
  • ENTERTAINMENT
  • OPINION
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Home » Blog » US defaults on $31.46 trillion debt may lead to a global crisis said treasury chief of the states
FinancenewsPoliticsWorld

US defaults on $31.46 trillion debt may lead to a global crisis said treasury chief of the states

Rudrakshi Gupta
Rudrakshi Gupta
Last updated: 2023/05/11 at 3:29 PM
Share
3 Min Read
SHARE

US president accepted the failure of Congress to deal with the crisis before the treasury runs out of money for all the governmental expenses. This has risked the economy into a recession possibility. 

In a dire warning to the United States government, Treasury Secretary Janet Yellen has stated that a default on the country’s $31.46 trillion debt could trigger a global financial crisis.

Yellen’s warning comes as the US Congress faces a deadline to raise the country’s borrowing limit, which is currently set at $28.4 trillion. Failure to raise the limit could result in the US defaulting on its debt for the first time in history, a move that Yellen warns could have catastrophic consequences.

“A default would be unprecedented and has the potential to have a catastrophic impact on not just financial markets but also on jobs, savings, and economic growth,” Yellen said in a letter to Congress.

Yellen’s letter comes as the Treasury Department has taken a series of measures to prevent the US from defaulting on its debt, including suspending certain investments in federal employee retirement funds and taking other emergency measures. But these measures can only buy the government a few months of additional time before a default becomes inevitable.

The consequences of a default would be felt not only in the US but also around the world. The US dollar is the world’s reserve currency, meaning that it is widely used in international transactions and is considered a safe haven by investors. A default could lead to a loss of confidence in the US dollar, causing it to weaken and potentially triggering a global financial crisis.

“The United States has always paid its bills on time and it is imperative that we continue to do so,” Yellen wrote in her letter. “Any delay in raising the debt ceiling would cause irreparable harm to the US economy and global financial markets.”

Yellen’s warning comes as the US economy continues to recover from the COVID-19 pandemic, with the country’s unemployment rate falling and economic growth accelerating. But a default could put all of this progress in jeopardy, leading to a recession and potentially derailing the global economic recovery.

As Congress debates the debt ceiling, Yellen’s warning serves as a stark reminder of the potentially catastrophic consequences of a US default. It is up to lawmakers to take action to prevent this worst-case scenario from becoming a reality.

You Might Also Like

Arun Matheswaran’s “Captain Miller” Makes Waves at the Box Office

India vs England Test Series Kicks Off with Exciting Offers

Cult Leader and Associates Ordered for Mental Health Evaluations

Indian Railways Takes Swift Action Against TTE Misconduct

Dua Lipa Advocates for Humanitarian Cease-Fire Amid Israel-Hamas Conflict

TAGGED: Express hunt, News, Recession risk, us finance default, USA
Rudrakshi Gupta May 11, 2023
Share this Article
Facebook Twitter Whatsapp Whatsapp Email Copy Link Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Surprise0
Wink0
Cry0
Previous Article TMKOC actress Jennifer Bansiwal accuses producer Asit Modi of sexual harassment
Next Article Former JDU Leader RCP Singh Joins BJP, Criticizes Nitish Kumar as ‘Palti Maar’
Leave a comment Leave a comment

Leave a Reply Cancel reply

You must be logged in to post a comment.

- Advertisement -
Ad imageAd image

Latest News

OM SHRI BHAKTI: The World’s First Devotional AI OTT Platform Ushers in a New Era of Spiritual Technology
Brand Stories July 18, 2025
Harshkumar Badheka Joins Hands with Mujtaba Aziz Naza for Upcoming Song, Will Also Direct
Brand Stories July 11, 2025
USDT Thunder International Ltd Ignites a Global Crypto Revolution with DeFi-Powered Wealth Ecosystem
Brand Stories July 4, 2025
Jogesh Mahal: Two Decades of Crafting Memories in Agartala
Brand Stories July 2, 2025
Follow US

© 2022-2024 Express Hunt . All Rights Reserved.

  • About EH
  • Privacy Policy
  • Get In Touch
  • My Bookmarks
  • Our Authors

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?