'The idea that the U.S. would not honor all of its obligations and pay them when due is something that can’t even be considered,” Fed's Powell said in front of Congress yesterday.
As Congress again wrestles over raising the level of debt the government can incur, Federal Reserve Chairman Jerome Powell cringed at what would happen if it fails to do so. "It's beyond even consideration. The idea that the U.S. would not honor all of its obligations and pay them when due is something that can't even be considered," the central bank leader said Tuesday in response to a question from Sen. Jon Tester, D-Mont.
couldn't pay its bills. The Treasury Department can use"extraordinary measures" to continue funding operations, a process that would last for several months. However, every time the warring parties come close to hitting the ceiling, it raises the specter of the U.S. defaulting on its debts, which now total just over $22 trillion. "I think it would be a very big deal not to pay all of our bills when and as due," Powell said."That's something I think the U.S.
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