US Default Would Isolate World From Dollar-Related Investments - Deputy Treasury Secretary

A default by United States on its financial obligations would reduce the willingness of people throughout the world to invest in products and instruments backed by the US dollar, Deputy Treasury Secretary Wally Adeyemo said on Monday

WASHINGTON (UrduPoint News / Sputnik - 15th May, 2023) A default by United States on its financial obligations would reduce the willingness of people throughout the world to invest in products and instruments backed by the US dollar, Deputy Treasury Secretary Wally Adeyemo said on Monday.

"(A) US default would make US debt and economy worse," Adeyemo said in an interview with news portal npr.org. "(A) US default would make people less willing to invest in Dollar assets."

The United States is teetering on the brink of a default of its obligations if the Biden administration fails to get its Republican rivals in Congress to agree to raising the nation's debt ceiling.

The Congressional Budget Office warned on Friday that the United States faced a "significant risk" of defaulting within the first two weeks of June if lawmakers fail to increase the amount of debt the country is legally allowed to take on.

Talks between President Joe Biden and top lawmakers on raising the $31.4 trillion debt ceiling are expected to resume early this week, after a planned meeting on Friday was postponed to allow staff to continue negotiations.