Yellen warns of constitutional crisis if congress fails to address debt ceiling

News

Yellen speaking on ABC News’s “This Week” said:

  • The US could face a potential constitutional crisis due to debt ceiling negotiations, with major consequences to the financial markets and interest rates
  • Debt ceiling negotiations should not take place “with a gun to the head of the American people”
  • Reiterated that the government could pay its bills only through early June

President Joe Biden will meet with Republican and Democratic leaders this week (on May 9) to discuss debt ceiling negotiations and financial challenges ahead of the June 1 deadline.

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