{"id":20615,"date":"2023-05-06T02:35:22","date_gmt":"2023-05-06T02:35:22","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/fed-chair-warns-of-uncertain-and-adverse-consequences-of-us-debt-default-wed-be-in-uncharted-territory-bitcoin-news\/"},"modified":"2023-05-06T02:35:22","modified_gmt":"2023-05-06T02:35:22","slug":"fed-chair-warns-of-uncertain-and-adverse-consequences-of-us-debt-default-wed-be-in-uncharted-territory-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/fed-chair-warns-of-uncertain-and-adverse-consequences-of-us-debt-default-wed-be-in-uncharted-territory-bitcoin-news\/","title":{"rendered":"Fed Chair Warns of ‘Uncertain and Adverse’ Consequences of US Debt Default \u2014 ‘We’d Be in Uncharted Territory’ \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Federal Reserve Chairman Jerome Powell has warned of \u201chighly uncertain and adverse\u201d economic consequences if the U.S. defaults on its debt obligations.<\/strong> \u201cNo one should assume that the Fed can protect the economy from the potential short and long-term effects of a failure to pay our bills on time,\u201d he further cautioned.<\/strong><\/p>\n

Fed Chair Jerome Powell\u2019s Debt Default Warning<\/h2>\n

Federal Reserve Chair Jerome Powell has warned of the potential consequences of a U.S. debt default. \u201cWe\u2019d be in uncharted territory and the consequences on the U.S. economy could be highly uncertain and adverse,\u201d he said<\/a> this week, adding:<\/p>\n

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No one should assume that the Fed can protect the economy from the potential short and long-term effects of a failure to pay our bills on time.<\/p>\n<\/blockquote>\n

Powell\u2019s warning came after the Federal Reserve increased<\/a> its key interest rates by 25 basis points this week \u2014 its 10th hike in 14 months. The increase takes the Fed Funds Rate to a target range of 5%-5.25%, the highest since August 2007.<\/p>\n

The Federal Reserve chairman noted that Fed officials discussed the potential risk of the U.S. debt limit during their latest Federal Open Market Committee (FOMC) meeting, but the topic did not have an impact on their rate hike decision.<\/p>\n

Many people have warned of the dire consequences of a U.S. debt default. Treasury Secretary Janet Yellen, for example, cautioned that it \u201cwould produce an economic and financial catastrophe<\/a>.\u201d The president of the European Central Bank (ECB), Christine Lagarde, said it would be a \u201cmajor disaster<\/a>\u201d if the U.S. were to default on its debt obligations.<\/p>\n

As Democrats and Republicans remain deadlocked over raising the debt ceiling, Yellen revealed this week that the Treasury Department will not be able to pay all of the government\u2019s debt obligations \u201cas early as June 1<\/a>, if Congress does not raise or suspend the debt limit before that time.\u201d<\/p>\n

Powell stressed that the Federal Reserve does not get involved in negotiations on this topic, stating:<\/p>\n

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We don\u2019t give advice to either aside \u2026 We just would just point out that it\u2019s very important that this be done.<\/p>\n<\/blockquote>\n

What do you think of Fed Chair Jerome Powell\u2019s warning about the U.S. defaulting on its debt obligations? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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