Janet Yellen, the secretary of the treasury department of the United States of America, raised concerns over the economy of the country. She shared it with the US Congress. It was stated that the government was nearing a situation of default. And in order to tackle the problem, her department was looking forward to taking a couple of unprecedented measures. As per her announcement, the said department would start working from the 2nd of August. This would be done if there is nothing done by the lawmakers in order to appropriately work on the debt ceiling.
Janet Yellen On The Crisis
Secretary Janet Yellen wrote a letter to Nancy Pelosi, the speaker of the House. The letter was also directed towards lawmakers. Through it, she updated them on the decision taken by her department. It stated that they will be suspending all the bond sales which is the avenue through which the debt obligations were financed by the country. Janet Yellen stated that this would be done during the last days of July.
After the 2nd of August, the department of the treasury is set to take extraordinary measures. This is to be done in order to make the payments for the financial as well the legal obligations of the US Congress. It is to be noted that this system will not go on for years. However, for a temporary period, Janet Yellen will be able to use the accounts of the government for a few weeks.
This is not the first time the treasury department has taken measures that are far from ordinary. But nobody knows for how long it will last this time as the country suffers an economic crisis due to the coronavirus pandemic. The country has never ever faced a debt situation until now, however, according to history, it has gotten close to the situation. And as a result, there have been several unforgettable situations.
