![]() ![]() Potential economic consequences of default include: recession and a sharp rise in unemployment chaos in financial markets and lasting damage to U.S. ![]() Experts across the political spectrum agree that the consequences of default-or even a near brush with default-would be severe for the U.S. The Treasury Department is currently deploying “extraordinary measures” to manage cash flow and keep borrowing within the limit to avert default. On January 19, Treasury Secretary Janet Yellen informed Congress that the federal government had hit the debt ceiling-a statutory limit on its ability to borrow to finance the ongoing obligations of governing. ![]() Recent announcements that the nation could face default as early as June 1 have heightened concerns over the impact of default-or even a close brush with default-might have on the economy. ![]()
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