US Treasury Secretary Yellen spoke in an interview with CNBC Monday US time.
Earlier headline posts:
- Yellen says again Treasury will run out of cash by June 1
- More from Yellen: Don't think recession is the most likely path, but can't rule one out
Reuters have a recap posted, main points ICYMI:
- failure by Congress to raise the $31.4 trillion federal debt limit would cause a huge hit to the U.S. economy and weaken the dollar as the world's reserve currency
- Asked whether the U.S. Treasury could prioritize payouts to bondholders in the event of a default, Yellen told CNBC that President Joe Biden would be forced to make decisions on what to do with Treasury's resources if the debt ceiling was not raised, but declined to discuss or rank the options.
- "There are a variety of different options, but there are no good options. Every option is a bad option,"
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What's next?
- Well US President Biden will meet with Republican House Speaker Kevin McCarthy, Senate Minority Leader Mitch McConnell and top congressional Democrats at the White House on Tuesday (US time) to try to break the impasse.
- Yellen conceded there was "a very big gap" between Biden's position and that of many Republicans
Biden and Yellen