Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas
Iranian Foreign Minister Abbas Araghchi holds a phone call with IAEA Director General Rafael Grossi
Trump envoy Witkoff has sent 'detailed and acceptable proposal' to Iran for nuclear deal; it's in their best interest to accept it: White House Press Secretary Leavitt
Hamas official says Witkoff's position toward group was 'unfair' and shows 'complete bias' to 'Israel'
Hamas official says it has considered Witkoff's proposal acceptable for negotiations, says 'Israel's' response was incompatible with what the group agreed on
Hamas official says group has not rejected Wikoff's proposal for Gaza ceasefire

US Treasury: debt default will make the world not invest in dollars

  • By Al-Mayadeen English
  • Source: Agencies
  • 15 May 2023 23:58
3 Min Read

Adeyemo expresses that a default would not only worsen the US economy, but it would make the dollar less interesting to the world and more of a risk.

  • x
  •  Bundles of banknotes of U.S. Dollar are pictured at a currency exchange shop in Ciudad Juarez, Mexico on January 15, 2018 (Reuters)
    Bundles of banknotes of U.S. Dollars at a currency exchange shop in Ciudad Juarez, Mexico on January 15, 2018 (Reuters)

US Deputy Treasury Secretary Wally Adeyemo has pronounced what the US has been fearing the most for its economy - in case of a default, people around the world won't be as motivated to invest in products and instruments backed by the US dollar. 

In an interview with NPR, Adeyemo said that a "US default would make US debt and economy worse,"  adding that it "would make people less willing to invest in dollar assets."

This update follows after US President Joe Biden confirmed on Monday that after talks with Congressional leaders, no deal was reached. House Speaker Kevin McCarthy separately said to CNN that they are still "far apart" in the talks, adding that it "seems like they want a default more than a deal." 

The President's Council of Economic Advisers (CEA), a federal agency led by a team of experts, issued a report on Wednesday warning of the possible consequences that would ensue from the US defaulting on its debt payments.

One of the consequences listed in the report includes a series of economic shocks that would result in 8 million job losses this year's summer, as well as a 6% drop in GDP. 

Related News

A true American horror story: The debt deal and the future of the US

Debt ceiling bill overwhelmingly passes US House

According to McCarthy, a deal should be reached this weekend in an attempt "to have a timeline to be able to pass it in both houses." Just two days ago, Biden told his press pool that talks were "moving along" but are "not there yet."

Read more: White House on raising US debt limit: 'We will not negotiate'

The White House and Republicans in Congress have been locked in a dispute on a deal that would avert an unprecedented national default as early as June.

US Treasury Secretary Janet Yellen warned Congress through ABC News last week that failing to resolve the debt ceiling issue on their part might create a "constitutional crisis" and send out a ripple effect across the financial markets.

"I don't want to consider emergency options. What's important is that members of Congress recognize what their responsibility is," she added.

The Republican bill to increase the debt limit and cut down on government spending was passed after a narrow 217-215 vote in the US House of Representatives by McCarthy. His proposal included raising the US debt limit by $1.5 trillion to avert the default of the world's biggest economy.

Senators have reiterated their call for Biden to negotiate the debt ceiling with McCarthy; calling on him to stop "playing Russian roulette" with the American economy. 

  • debt default
  • US
  • Wally Adeyemo
  • Kevin McCarthy
  • Janet Yellen
  • Joe Biden

Most Read

President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS