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Politics Yellen: There will be a 'deep recession' if debt ceiling isn't lifted

23:06  30 november  2021
23:06  30 november  2021 Source:   dailymail.co.uk

Schumer-McConnell dial down the debt ceiling drama

  Schumer-McConnell dial down the debt ceiling drama Senate Majority Leader Charles Schumer (D-N.Y.) and GOP Leader Mitch McConnell (Ky.) are dialing down the drama as they try to find an escape hatch from another high-stakes fight over the debt ceiling. Congress has until roughly Dec. 15 to raise the nation's borrowing limit, according to Treasury Secretary Janet Yellen, who has warned that the mid-December date is when the government will no longer be able to fully pay its bills. On theCongress has until roughly Dec. 15 to raise the nation's borrowing limit, according to Treasury Secretary Janet Yellen, who has warned that the mid-December date is when the government will no longer be able to fully pay its bills.

Biden's Treasury Secretary Janet Yellen warns there will be a ' deep recession ' and any signs of recovery will be 'eviscerated' if the US doesn' t 'pay it's bills on time' and doesn' t lift debt ceiling by December 15. If we do not, we will eviscerate our current recovery,' Yellen told the Senate Banking Committee. Yellen said that in a 'matter of days' the majority of Americans would suffer financially if Congress didn' t lift or suspend the debt ceiling . Yellen 's warning comes as it's not entirely clear how lawmakers will get a debt bill through the nearly deadlocked Senate in the next 16 days.

The "real fireworks" - as DB put it - will likely land during the Q&A, where Powell and Yellen will be grilled by Senators of both parties. Fed Chair Powell set to appear before the Senate Banking Committee at 15:00 London time, where he may well be asked about whether the Fed plans to accelerate the Keep in mind: regardless of what Moderna CEO Bancel says, only a tiny minority on Wall Street actually expect omicron to be a major issue a few weeks from now. In other news, concerns about the next debt ceiling fight, which will kick into high gear in the coming days, is already creating

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Treasury Secretary Janet Yellen warned lawmakers Tuesday that the U.S. could suffer a 'deep recession' if they don't raise the debt ceiling by December 15.

'I cannot overstate how critical it is that Congress address this issue,' she urged the Senate Banking Committee. 'America must pay its bills on time and in full. If we do not, we will eviscerate our current recovery.'

Yellen said that in a 'matter of days' the majority of Americans would suffer financially if Congress didn't lift or suspend the debt ceiling.

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'As critical payments like social security checks and military paychecks would not reach their bank accounts and that would likely be followed by a deep recession,' Yellen predicted.

NDAA, debt ceiling, government funding: Here's what's left for Congress to address in 2021

  NDAA, debt ceiling, government funding: Here's what's left for Congress to address in 2021 Both chambers of Congress will be working to try to avoid a government shut and default, as well approve a must-pass national security package.Both chambers of Congress will be working in overdrive to try to avoid a government shut and default, both of which would be catastrophic for the economy, which has already been grappling with the repercussions of the COVID-19 pandemic.

Treasury Secretary Janet Yellen renewed her call for Congress to raise or suspend the U.S. debt ceiling , saying the government will otherwise run out of money to pay its bills sometime in October. Writing in a Wall Street Journal op-ed, Yellen said “the overwhelming consensus among economists and Treasury officials of both parties is that failing to raise the debt limit would produce widespread economic catastrophe.”

CNBC's Steve Liesman reports on Fed Chair Jerome Powell and Treasury Secretary Janet Yellen 's testimony today on what could happen if the debt ceiling is not raised. Trump: Green New Deal will be easy to beat.

Earlier this month, Yellen told Congressional leaders that the federal government had more time than her initial estimate on when it would default on its debt.

Yellen had originally estimated the country wouldn't be able to pay its bills after December 3, but a revised estimate put that closer to December 15.

Still, the clock is ticking and it's not entirely clear how lawmakers will get a debt bill through the nearly deadlocked Senate.

Senate Minority Leader Mitch McConnell initially resisted helping the Democrats, but did agree in mid-October to raise the debt ceiling by $480 billion.


Video: Biden returning to Obama-era high taxes, regulation amid inflation: Former Pence chief of staff (FOX News)

Eleven Republicans joined Democrats to clear the 60-vote hurdle bypassing a GOP-led filibuster, while no Republicans joined Democrats on the final vote.

Fox News Host Confronts GOP Senator: ‘Why Are You Against’ Raising Debt Limit?

  Fox News Host Confronts GOP Senator: ‘Why Are You Against’ Raising Debt Limit? Fox News host Trace Gallagher briefly pressed Sen. John Barrasso (R-WY) on Sunday over the GOP senator’s refusal to support raising the debt ceiling, wondering aloud why Barrasso is against it since it covers already authorized government expenses. Following the Thanksgiving break, the U.S. Senate is poised for an extremely busy and tense next few weeks. Democrats, who hold a very slim majority in the chamber, will be tasked not only with trying to find a way to iron out intra-party squabbles over the Build Back Better social spending plan but they’re also forced to go it alone in terms of boosting the debt limit before the government runs out of money next month.

Yellen ’s letter was sent just hours after Senate Republicans on Monday voted against a measure to suspend the debt ceiling , arguing that it would enable more purportedly reckless spending from Democrats. The Bipartisan Policy Center recently estimated that the Treasury will run out of cash between Oct. Treasury Secretary Janet Yellen on Tuesday warned members of Congress that the United States’ cash reserves will likely be exhausted unless lawmakers vote to raise or suspend the debt ceiling by Oct. 18, warning that it’s not clear if the United States would be able to meet all of its

Treasury Secretary Janet Yellen told U.S. financial regulators Thursday that if Congress fails to address the nation’s debt ceiling , there may be “financial stability implications.” The fallout from not raising the limit in a “timely manner” was among topics raised at a private meeting of the Financial Stability Oversight Council, the Treasury Department said in a statement. Yellen has campaigned for congressional action and has warned that the Treasury would probably reach the borrowing limit sometime next month.

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McConnell's tone in recent days suggests he won't again play hard ball with the debt ceiling - however he's consistently said Democrats needed to vote on it alone.

'Let me assure everyone the government will not default as it never has,' McConnell said Tuesday. 'And second, the majority leader and I have been having discussions about the way forward.'

Prodded about what kind of support Republicans would give Democrats to increase the debt ceiling, McConnell responded, 'We're having useful discussions about the way forward.'

Punchbowl News reported that Senate Democrats are thinking about raising the debt ceiling in a standalone reconciliation bill and thus only Democratic voted would be needed for passage.

Republicans would have to agree to limit the amendment process, so the reconciliation process could be done swiftly and before the December 15 deadline.

Democrats are gambling on a Christmas rush to pass Biden's economic agenda, keep the government from shutting down, and continue paying the country's bills to avoid economic catastrophe

  Democrats are gambling on a Christmas rush to pass Biden's economic agenda, keep the government from shutting down, and continue paying the country's bills to avoid economic catastrophe "It will likely take some long nights and weekends," Chuck Schumer said, referring to major bills his party is hoping to pass before the year ends.Two weeks ago, the House passed President Joe Biden's Build Back Better framework, and while that was a significant step toward advancing Democrats' social-spending agenda, they still have a ways to go. Not only does that framework face the Senate now, where it will likely see additional cuts and amendments, but Democrats also have to deal with averting a government shutdown, raising the debt ceiling, and passing a defense spending bill — all of which they hope to accomplish in December.

Sep.30 -- Treasury Secretary Janet Yellen says Treasury has been using extraordinary measures to avoid going over the debt ceiling . She says again it would be a “catastrophe” if Congress doesn’ t act. She says again it would be a “catastrophe” if Congress doesn’ t act. She spoke before the U.S. House Financial Services Committee and took this question from Rep. Patrick McHenry, a Republican from North Carolina.

Treasury Secretary Janet Yellen informed lawmakers Tuesday the federal government will reach its debt ceiling by Dec. 15, setting a timeline for what is expected to be a heated debate in Congress over raising the limit. 3. But the Treasury Secretary urged Congress to act quickly to raise the debt ceiling , warning " there are scenarios in which Treasury would be left with insufficient remaining resources to continue to finance the operations of the U.S. government beyond this date." "To ensure the full faith and credit of the United States, it is critical that Congress raise or suspend the debt limit

However, a single rogue Republican senator could throw a wrench in that plan.

Meanwhile, former President Donald Trump continues to scream at McConnell to use the debt ceiling to trip up President Joe Biden's $1.75 trillion Build Back Better bill, which still needs to be passed by the Senate.

'Old Crow Mitch McConnell, who is getting beaten on every front by the Radical Left Democrats since giving them a two-month delay which allowed them to "get their act together," must be fully prepared to use the DEBT CEILING in order to totally kill the Democrat’s new Social Spending (Wasting!) Bill, which will change our Country forever,' Trump wrote in a statement Tuesday.

McConnell and Republicans could elongate the debt ceiling process to delay the Build Back Better bill, but Democratic Sen. Joe Manchin is already holding up passage, as he objects to some of the provisions House Democrats put in, including paid family leave.

Democrats are using reconciliation to pass Build Back Better, so McConnell and Republicans will be unable to filibuster the bill.

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Republicans Reject Mitch McConnell's Plan To Raise the Debt Ceiling .
The federal government is expected to default on its debts by January 28 unless an agreement is reached.Senate Majority Leader Chuck Schumer (D-NY) has been in talks with Senate Minority Leader Mitch McConnell (R-KY) in the hopes of reaching an agreement that would allow Democrats to raise the debt limit without Republican votes.

usr: 1
This is interesting!