A US debt default could spark mass unemployment, payment failures, and catastrophe that would raise interest rates 'into perpetuity,' Treasury Secretary Janet Yellen warns

Tue, 04/25/2023 - 13:41

Treasury Sec. Janet Yellen — U.S. Treasury Secretary Janet Yellen speaks during a news conference at the IMF and World Bank Annual Meetings at IMF headquarters, October 14, 2022 in Washington, DC.
Drew Angerer/Getty Images

A US debt default would be a disaster for the economy, Treasury Secretary Janet Yellen said.
She warned of potential mass unemployment, payment failures, and broad economic weakness if the US failed to pay its debts.
She urged lawmakers to raise the debt ceiling and not wait "until the last minute" to do so.

A government debt default would be catastrophic for the US economy, sparking mass unemployment, payment failures, and interest rates rising "into perpetuity," according to US Treasury Secretary Janet Yellen.