Janet Yellen, the treasury secretary, made a statement to the House speaker Nancy Pelosi. In her address, Yellen warns the Congress of the treasury to exhaust cash reserves if the debt ceiling isn’t raised.
The treasury secretary informed the Congress that they have around three weeks to take action, I.e., before October 18. As a measure against the exhausting cash reserve in the treasury, Janet Yellen asked Congress to either raise or suspend the debt limit.
If the problem is not resolved before the mentioned date, it will turn into an economic calamity, she said.
Yellen is also to testify in front of the Senate later, on Tuesday morning. The U.S. has never defaulted before, but if this issue remains as is, this could be the first case of the U.S. defaulting on its debt.