Treasury Secretary Janet Yellen warned that the United States would go into recession if Congress failed to agree to raise the debt ceiling as soon as possible.
Yellen said Oct. 18 is an important deadline for lawmakers to find a solution to prevent the U.S. from failing to fulfill its responsibilities.
If they fail to get a deal, it could also cause America to fall into recession. This is because, when government operations move slowly or are stopped, it will affect business in the government sector and the whole economy turt receive the same effect.
In the meantime, it could also affect Social Security payments for 50 million seniors, the U.S. armed forces and the issuance of child tax credits for millions of families in the country.
On Monday, President Joe Biden urged Congress to raise the debt limit this week to avoid economic turmoil. He blamed Republican Senate Leader Mitch McConnell for being a hindrance to this deal.
The U.S. Treasury Department is now using temporary funding to prevent a government shutdown from happening late last month that will help fund the government until Dec. 3.
