US Treasury Faces Dilemma of Breaking Law to Avoid Default
TL;DR Summary
The US Treasury may have to prioritize certain debt payments over others and potentially break the law to avoid defaulting on its debts, as Congress has yet to reach a deal on raising the debt ceiling. Treasury Secretary Janet Yellen has warned that the US could breach the debt ceiling as early as June 1, and the Bipartisan Policy Center predicts a fragile period between June 2-13. If Yellen exhausts all possible maneuvers, she may have to direct the Treasury to prioritize certain debt payments over others, potentially leading to lawsuits and downgrades in the US's debt rating.
- The US Treasury may have to break the law to keep the world’s richest nation from default Yahoo Finance
- Republicans question June 1 debt ceiling deadline as talks zero in on potential trade-offs CNBC
- New Report Underscores Increasing Chances of U.S. Default in Early June The New York Times
- What a debt default would mean for national security The Hill
- Analysis | The unique absurdity of the U.S.'s looming debt default The Washington Post
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