Lack of Debt Repayment Impacts US’s Global Reputation Warns Treasury Secretary

US Treasury Secretary Janet Yellen said at a congressional hearing that a US debt default would lead to a loss of confidence on the part of international partners and serious economic damage to the country.

“A debt default will lead to a loss of confidence in the United States as the safest country economically, as well as a reserve currency,” Yellen said.

“Such a scenario would cause serious economic damage to the state,” she added.

Russian economist Mikhail Belyaev said on March 16 that with the growth of public debt and insufficient momentum for the development of the economy in the United States, the probability of a default is high, which will affect many countries.

He urged Bank of America CEO Brian Moynihan to prepare for the possibility that the US could default on government debt, which could lead to instability not only in the US but around the world.


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