Debt default would undermine US’s leadership role and influence overseas, argues 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 called on the CEO of the Bank of America Brian Moynihan to prepare for the fact that the US may default on public debt, which could lead to instability not only in the US but throughout the world.

Source: Gazeta.ru

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