Legislative reluctance to raise the debt ceiling can put the United States on the brink of economic disaster. Treasury secretary Yellen urged Congress to make a decision on the debt by October to avoid default on government payment obligations. The potential default “will accelerate the historical financial crisis and exacerbate the damage from the coronavirus pandemic,” Yellen said. The economy will go into recession and the United States as a whole will become a much weaker country. “Neither postponement nor default is acceptable. Legislators must act quickly,” added the finance minister.

In the penultimate week of September, the lower house of Congress will vote to raise the $28 trillion national debt limit. However, the confrontation between the Democratic and Republican parties does not give confidence in a unanimous decision and puts the US economy at risk of a large-scale crisis.