Treasury Secretary Yellen Urges Congress to Address Debt Limit and Discusses G7 Priorities at Press Conference in Japan

US Treasury Secretary Janet Yellen has issued a warning of the potentially catastrophic effects of the US failing to address the debt limit, speaking at a press conference in Niigata, Japan on May 11th. She stated that the US government could be unable to meet its financial obligations by as early as June 1st if Congress does not act. A default on obligations could cause an economic and financial crisis, costing millions of Americans their jobs, reducing household incomes and business investments, and threatening the gains made during the pandemic recovery. Yellen urged Congress to act quickly to raise or suspend the debt limit, which has been done about 80 times since 1960. Yellen also discussed the priorities of the G7 and her three core priorities: supporting the global macroeconomy, supporting Ukraine as it defends itself against Russia, and long-term work to bolster economic resilience and security.