America: Debt may lead to recession, Finance Minister Janet Yellen warns

Janet Yellen

Washington: US Treasury Secretary i.e Finance Minister Janet Yellen warned on Tuesday that America could again fall into recession due to debt. He said the US loan default could lead to another recession. Eminent economist Yellen told CNBC: “With US lawmakers fighting to raise the debt cap and debt defaults are bound to happen, I fully expect it to lead to a recession.”

Yellen had already warned that if Congress did not relax the legal debt limit, the United States would not have the funds to meet its obligations to creditors after October 18.

In fact, Congress has done so dozens of times in the past decades since setting borrowing limits, and votes are usually bipartisan and far from contentious. This year, Republicans are refusing to vote to raise the debt ceiling, showing extraordinary bitterness in Washington.

Not only that, but they are also taking oaths to prevent Democrats from passing a simple vote along party lines.

74-year-old Janet Yellen has previously been the governor of the US central bank, the Federal Reserve. He headed the Federal Reserve from 2014 to 2018. Yellen graduated from Brown and Yale. He has taught economics at some of the most prestigious universities in the world. Yellen is best remembered for her tenure as governor of the Federal Reserve in an era of declining unemployment and sustained economic recovery from the global financial crisis.