Yellen warns of likely October debt cliff and incoming 'irreparable damage'

Treasury Secretary Janet Yellen warned congressional leaders on Wednesday that she expects the country’s debt limit will hit its breaking point next month, dealing a likely blow to the global economy without quick action.
In a letter to top lawmakers in both parties, Yellen said the Biden administration’s “best and most recent” calculations suggest that the United States will run out of cash “during the month of October.” If Congress continues to push off action on the debt limit over the next few weeks, she warned, the uncertainty alone could hurt financial markets.
“We have learned from past debt limit impasses,” the secretary wrote, “that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States.”
Hearkening to the 2011 debt limit standoff that

Politico News - Congress
By Jennifer Scholtes and Caitlin Emma

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