US Department of Finance Chapter Janet Yellen on the air ABC television channel predicted the country an economic catastrophe under one condition. According to her, a serious financial crisis will come, if not to increase the ceiling of the public debt, reports TASS.
The Minister noted that it is not necessary to cover new costs, but to ensure the financing of the previous initiatives of the Congress, and if this body does not decide until December, the consequences can be quite serious, because it stands “too much” .
“will be undermined the status of securities of the Ministry of Finance – the most reliable asset in the world, as well as the dollar as a global reserve currency. The impossibility to increase the limit of borrowing will certainly cause a recession and can even lead to a financial crisis. It would be a catastrophe,” Jellen stressed.
Earlier, the leader of the democratic majority in the US Senate Chuck Shumer said that the party had concluded an agreement to increase the ceiling of public debt by $ 480 billion. According to the Ministry of Finance, the decision will be valid until December 3. This step allowed the United States to prevent the first in the history of the country default on the public debt.
On December 8, the US Senate with the voting adopted a bill. For his adoption, 50 senators spoke, 48 opposed. The document allows it up to December 3 to raise the ceiling of the public debt, while negotiations are going between the Republican and Democratic Party.