January 1, Treasury Secretary raises alarm over nation’s debt ceiling

Treasury Secretary Janet Yellen is raising the alarm over the nation’s borrowing limit that could set off a worldwide economic crisis if Congress fails to take action.

Yellen warned congressional leaders on Wednesday that the US could potentially default on its debt in October. There is now reportedly a scramble to determine how to raise the debt ceiling in time.

“The time for Congress to act is now to make sure the U.S. does not come close to defaulting on some of its obligations,” said Rachel Snyderman, associate director at the Bipartisan Policy Center, a think tank that monitors the debt limit. “But what’s concerning right now is that there are so many important priorities at play.”

Republicans vowed to withhold votes for the debt ceiling, though they helped suspend it under former President Donald Trump.

“Democrats control Washington now. They can raise the debt limit on their own,” said Doug Andres, a spokesman for Sen. Mitch McConnell (R-KY), on Wednesday.

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Yellen triggers alarm bells over debt ceiling cliff