Yellen said in an interview with Bloomberg that she would be meeting with senior bankers on Wall Street to discuss the debt ceiling next week, and she also reiterated that Congress’ failure to raise the debt ceiling by $31.4 trillion will cause economic crisis and financial disaster.
A meeting was scheduled for Friday between President Joe Biden and his Republican opponents concerning the raising of the American debt ceiling, but the White House announced the postponement of these talks to “early next week”.
Congressional Republicans are demanding that Biden agree to a significant reduction in budget spending initially, before agreeing to raise the debt ceiling, a move that will allow the government to borrow more money.
Democratic President Biden met with Republican House of Representatives Speaker Kevin McCarthy and Republican Senate Minority Leader Mitch McConnell on Tuesday without moving forward on raising the debt ceiling and averting Washington’s default. on his debt. .
After the meeting, Biden stressed that defaulting on public debt is “not an option.”
Regarding US banks and concerns about regional banks in particular, Janet Yellen said most US banks, including those with declining stocks, will be able to reimburse uninsured depositors, adding that the Treasury Department is monitoring the situation closely.
She also said that the three US banks that have collapsed in the last few months were suffering from large losses and a very high percentage of uninsured deposits, but the banking system in general has good capital and is still making “very strong earnings”.
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