US Treasury announced the approach of an “unthinkable” default

If the ceiling on government debt on payment obligations is not raised, then everything could turn into a default, this is “unthinkable”, said US Treasury Secretary Janet Yellen, reports Reuters. In this case, a recession may occur.

Jerome Powell, Chairman of the Board of Governors of the Federal Reserve System, added that measures will be taken to prevent default, which may be considered “disgusting”. They represent control over payments on loans of the Ministry of Finance, where priority will be given to the main debt, and only then to interest.

Powell also considers it necessary to introduce control of the US Treasury over operations on default bonds, and borrowers can be provided with credit holidays. At the same time, the decision on the ceiling of the state debt must be made by the end of October, otherwise a default will occur.

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