and risk undermining the country’s ability to provide global leadership. “A default would threaten the gains that we’ve worked so hard to make over the past few years in our pandemic recovery. And it would spark a global downturn that would set us back much further,” Yellen said Thursday in Niigata, Japan, where she is attending a meeting of G7 finance ministers and central bankers.
As leaders in Washington fail to make progress on a debt ceiling deal, Yellen has forecast that the United States could run out of cash and extraordinary measures to pay its bills as soon as early June. To prompt action, Yellen has been stepping up warnings on the matter in recent days, even personally calling CEOs to discuss the consequences of brinkmanship around the debt ceiling, a source has told CNN.
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