www.cnbc.com Open in urlscan Pro
104.89.26.156  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip Navigation
BREAKING
Altimeter’s Brad Gerstner sold United Airlines, Expedia stakes, says easy money
has been made

Congress must raise debt limit by Oct. 18, Treasury Secretary Yellen warns in
new letter as default looms
 * watchlivePower Lunch

Markets
 * Pre-Markets
 * U.S. Markets
 * Europe Markets
 * China Markets
 * Asia Markets
 * World Markets
 * Currencies
 * Cryptocurrency
 * Futures & Commodities
 * Bonds
 * Funds & ETFs

Business
 * Economy
 * Finance
 * Health & Science
 * Media
 * Real Estate
 * Energy
 * Climate
 * Transportation
 * Industrials
 * Retail
 * Wealth
 * Life
 * Small Business

Investing
 * Invest In You
 * Personal Finance
 * Fintech
 * Financial Advisors
 * Trading Nation
 * Options Action
 * ETF Street
 * Buffett Archive
 * Earnings
 * Trader Talk

Tech
 * Cybersecurity
 * Enterprise
 * Internet
 * Media
 * Mobile
 * Social Media
 * CNBC Disruptor 50
 * Tech Guide

Politics
 * White House
 * Policy
 * Defense
 * Congress
 * Equity and Opportunity
 * Europe Politics
 * China Politics
 * Asia Politics
 * World Politics

CNBC TV
 * Live Audio
 * Latest Video
 * Top Video
 * CEO Interviews
 * Europe TV
 * Asia TV
 * CNBC Podcasts
 * Digital Originals

Watchlist
PRO
 * Pro News
 * Pro Live
 * Subscribe
 * Sign In



Menu

 * Make It

 * USA
 * INTL

Search quotes, news & videos
SIGN IN
Congress must raise debt limit by Oct. 18, Treasury Secretary Yellen warns in
new letter as default looms
 * watchlivePower Lunch

Markets
 * Pre-Markets
 * U.S. Markets
 * Europe Markets
 * China Markets
 * Asia Markets
 * World Markets
 * Currencies
 * Cryptocurrency
 * Futures & Commodities
 * Bonds
 * Funds & ETFs

Business
 * Economy
 * Finance
 * Health & Science
 * Media
 * Real Estate
 * Energy
 * Climate
 * Transportation
 * Industrials
 * Retail
 * Wealth
 * Life
 * Small Business

Investing
 * Invest In You
 * Personal Finance
 * Fintech
 * Financial Advisors
 * Trading Nation
 * Options Action
 * ETF Street
 * Buffett Archive
 * Earnings
 * Trader Talk

Tech
 * Cybersecurity
 * Enterprise
 * Internet
 * Media
 * Mobile
 * Social Media
 * CNBC Disruptor 50
 * Tech Guide

Politics
 * White House
 * Policy
 * Defense
 * Congress
 * Equity and Opportunity
 * Europe Politics
 * China Politics
 * Asia Politics
 * World Politics

CNBC TV
 * Live Audio
 * Latest Video
 * Top Video
 * CEO Interviews
 * Europe TV
 * Asia TV
 * CNBC Podcasts
 * Digital Originals

Watchlist
PRO
 * Pro News
 * Pro Live
 * Subscribe
 * Sign In



Menu


Politics


CONGRESS MUST RAISE DEBT LIMIT BY OCT. 18, TREASURY SECRETARY YELLEN WARNS IN
NEW LETTER AS DEFAULT LOOMS

Published Tue, Sep 28 20219:16 AM EDTUpdated Tue, Sep 28 20218:31 PM EDT
Thomas Franck@tomwfranck
ShareShare Article via FacebookShare Article via TwitterShare Article via
LinkedInShare Article via Email
Key Points
 * Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi that Congress
   has just under three weeks to address the looming debt ceiling and avoid
   economic calamity.
 * “We now estimate that Treasury is likely to exhaust its extraordinary
   measures if Congress has not acted to raise or suspend the debt limit by
   October 18,” Yellen wrote.
 * Senate Minority Leader Mitch McConnell later Tuesday blocked a motion from
   Majority Leader Chuck Schumer that would’ve allow Democrats to address the
   debt limit with a majority vote.

Treasury Secretary Janet Yellen testifies during a Senate Banking, Housing and
Urban Affairs Committee hearing on the CARES Act, at the Hart Senate Office
Building in Washington, DC, U.S., September 28, 2021.
Kevin Dietsch | Reuters

Treasury Secretary Janet Yellen on Tuesday told House Speaker Nancy Pelosi that
Congress has just under three weeks to address the looming debt ceiling and
avoid near-certain economic calamity.

“We now estimate that Treasury is likely to exhaust its extraordinary measures
if Congress has not acted to raise or suspend the debt limit by October 18,” she
wrote in a letter. “At that point, we expect Treasury would be left with very
limited resources that would be depleted quickly.”



Yellen, who will testify before the Senate later Tuesday morning, warned in a
separate statement to lawmakers that failure to suspend or raise the debt limit
would lead to the first-ever U.S. default and have severe consequences for the
U.S. economy.

VIDEO2:5902:59
Powell and Yellen warn of economic crisis if the debt ceiling isn’t raised
The News with Shepard Smith


“It is imperative that Congress swiftly addresses the debt limit. If it does
not, America would default for the first time in history,” she said in her
remarks to the Senate Banking Committee. “The full faith and credit of the
United States would be impaired, and our country would likely face a financial
crisis and economic recession.”

Senate Minority Leader Mitch McConnell, R-Ky., later Tuesday blocked Schumer’s
motion that would allow Democrats to address the debt limit with a simple
majority vote. It needed unanimous support.

The move would have allowed Democrats to bypass a Republican filibuster and
suspend or raise the ceiling without a GOP vote.

Because the U.S. has never defaulted on its debt before, economists have to rely
on forecasts and guesswork when trying to estimate the economic fallout a
default would bring. Still, most economists say such a default would bring about
financial calamity that could trigger a broad market sell-off and economic
downturn amid a spike in interest rates.



“You would expect to see an interest rate spike if the debt ceiling were not
raised,” Yellen said during live testimony on Tuesday. “I think there would be a
financial crisis and a calamity. Absolutely, it’s true that the interest
payments on the government debt would increase.”

Yellen’s letter to Pelosi, D-Calif., is the latest in a string of communications
between the Treasury secretary and congressional leadership as the U.S. nears
missing a payment to its debtholders. A spokesman for the House speaker did not
respond to a request for comment.

Pelosi and Senate Majority Leader Chuck Schumer, D-N.Y. have in recent weeks
called upon Republicans to pass a suspension to the debt ceiling as a bipartisan
duty.

“Now, as Minority Leaders McCarthy and McConnell welcome a disaster they both
know is coming, Republican luminaries, former Treasury Secretaries, business
groups, and top economists are joining the growing chorus of Americans demanding
that they stop putting politics over the health of the U.S. economy,” Pelosi’s
office said last week, before Yellen’s latest letter.

Senate Republicans on Monday blocked a bill that would fund the government and
suspend the U.S. borrowing limit. The GOP opposed the House-approved bill
because it included a provision to suspend the debt ceiling, a task Republicans
say ought to be up to Democrats alone.

McConnell responded to Yellen’s latest warning to Congress later Tuesday
morning.


CNBC POLITICS

Read more of CNBC’s politics coverage:

 * Senate may vote Wednesday on bill to prevent a government shutdown as
   deadline approaches
 * Defense Secretary Austin admits in Senate testimony Afghan army collapse
   ‘took us all by surprise’
 * Sen. Warren calls Fed Chair Powell a ‘dangerous man,’ says she will oppose
   his renomination

“If Democrats want to use fast-track, party-line procedures to ram
through trillions more in inflationary socialism, they’ll have to use the same
tools to handle the debt limit,” he said from the Senate floor.

“It’s time for our democratic colleagues to stop dragging their heels and
get moving,” the Republican leader added. “But Democrats in congress don’t seem
to be acting with any urgency.”

Republicans want Democrats to raise or suspend the debt ceiling by including a
provision in their $3.5 trillion reconciliation bill.

Government funding and the debt ceiling are separate issues.

The U.S. government will shut down at the end of September if lawmakers fail to
approve a new funding or appropriations bill. In that case, government agencies
must send thousands of federal employees home and operate at a limited capacity
until funding is resumed.

The debt ceiling is viewed as the greater economic threat since failing to
suspend or raise the U.S. borrowing limit would result in a first-ever default
and untold economic havoc.

Raising or suspending the debt ceiling does not authorize new federal spending,
but rather allows the Treasury to honor debts already incurred during the Trump
and Biden administrations. Even if the Biden administration had passed no new
spending initiatives in 2021, lawmakers would still have to raise or suspend the
ceiling.

Republicans approved three such debt ceiling increases or suspensions during the
Trump administration, under which the national debt rose by roughly $8 trillion.


TV
Power LunchWATCH LIVEWATCH IN THE APP
UP NEXT | Closing Bell 3:00 PM ETListen
TV
Power LunchWATCH LIVEWATCH IN THE APP
UP NEXT | Closing Bell 3:00 PM ETListen

Trending Now

 1. They left the U.S. for the beach life: ‘We’ve saved so much money—here’s
    what we do and spend in a week’
    
 2. Senate may vote Wednesday on bill to prevent a government shutdown as
    deadline approaches
    
 3. Warby Parker opens at $54.05 per share in public debut on NYSE, soaring 30%
    above reference price
    
 4. Fed Chair Powell calls inflation ‘frustrating’ and sees it running into next
    year
    
 5. Majority of restaurant operators say business conditions are worse now than
    three months ago
    




 * Subscribe to CNBC PRO
 * Licensing & Reprints
 * CNBC Councils
 * Supply Chain Values
 * CNBC on Peacock
 * Advertise With Us
 * Join the CNBC Panel
 * Digital Products
 * News Releases
 * Closed Captioning
 * Corrections
 * About CNBC
 * Internships
 * Site Map
 * Manage Cookie Preferences
 * Careers
 * Help
 * Contact

 * 
 * 
 * 
 * 
 * 
 * 
 * 

NEWS TIPS

Got a confidential news tip? We want to hear from you.

Get In Touch
CNBC NEWSLETTERS

Sign up for free newsletters and get more CNBC delivered to your inbox

Sign Up Now

Get this delivered to your inbox, and more info about our products and
services. 

Privacy Policy|Do Not Sell My Personal Information|CA Notice|Terms of Service

© 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global
Business and Financial News, Stock Quotes, and Market Data and Analysis.

Market Data Terms of Use and Disclaimers

Data also provided by






COOKIE SETTINGS

We and our partners collect information from your device, such as device
identifiers, IP address, and your browser type to personalize and deliver
content, marketing and advertising—across devices and platforms; for analytics
and measurement, so we can improve our services and develop new ones; to match
and combine offline data with your online activity; and for social features. We
share this information with selected partners with your consent. By clicking
“Allow All”, you consent to our use of these Cookies. Click on the Cookie
categories or the “Detailed purpose descriptions” below to learn more about
these Cookies. We will also use other Cookies that are essential for our site
and Services, including for security and fraud prevention. To learn more about
some of our partners, see the List of IAB Vendors below. Visit our Cookie Notice
and Privacy Policy to learn more.
Allow All


MANAGE CONSENT PREFERENCES

STRICTLY NECESSARY COOKIES

Always Active

These Cookies are required for Service functionality, including security and
fraud prevention, and to enable any purchasing capabilities. You can set your
browser to block these Cookies, but some parts of the site may not function
properly.

Non-IAB Cookies‎

ENSURE SECURITY, PREVENT FRAUD, AND DEBUG

Always Active

Your data can be used to monitor for and prevent fraudulent activity, and ensure
systems and processes work properly and securely.

List of IAB Vendors‎ | Detailed Purpose Descriptions Opens in a new Tab

TECHNICALLY DELIVER ADS OR CONTENT

Always Active

Your device can receive and send information that allows you to see and interact
with ads and content.

List of IAB Vendors‎ | Detailed Purpose Descriptions Opens in a new Tab

STORE AND/OR ACCESS INFORMATION ON A DEVICE

Store and/or access information on a device

Cookies, device identifiers, or other information can be stored or accessed on
your device for the purposes presented to you.

List of IAB Vendors‎ | Detailed Purpose Descriptions Opens in a new Tab
Non-IAB Cookies‎

PERSONALISED ADS, AND AD MEASUREMENT

Personalised ads, and ad measurement

 * SELECT PERSONALISED ADS
   
   Switch Label
   
   Personalised ads can be shown to you based on a profile about you.

 * MEASURE AD PERFORMANCE
   
   Switch Label
   
   The performance and effectiveness of ads that you see or interact with can be
   measured.

 * CREATE A PERSONALISED ADS PROFILE
   
   Switch Label
   
   A profile can be built about you and your interests to show you personalised
   ads that are relevant to you.

 * SELECT BASIC ADS
   
   Switch Label
   
   Ads can be shown to you based on the content you’re viewing, the app you’re
   using, your approximate location, or your device type.

 * TARGETED ADVERTISING COOKIES
   
   Switch Label
   
   These Cookies are used to collect data about your browsing habits, use of the
   Services, your preferences, and your interaction with advertisements across
   platforms and devices for the purpose of delivering targeted advertising
   content, both on our Services and on third party sites. Third-party sites and
   services also use Targeting Cookies to deliver content, including
   advertisements relevant to your interests on the Services. If you reject
   these Cookies, you will see less relevant advertising.

List of IAB Vendors‎ | Detailed Purpose Descriptions Opens in a new Tab
Non-IAB Cookies‎

PERSONALISED CONTENT, CONTENT MEASUREMENT, AUDIENCE INSIGHTS, AND PRODUCT
DEVELOPMENT

Personalised content, content measurement, audience insights, and product
development

 * DEVELOP AND IMPROVE PRODUCTS
   
   Switch Label
   
   Your data can be used to improve existing systems and software, and to
   develop new products

 * SELECT PERSONALISED CONTENT
   
   Switch Label
   
   Personalised content can be shown to you based on a profile about you.

 * APPLY MARKET RESEARCH TO GENERATE AUDIENCE INSIGHTS
   
   Switch Label
   
   Market research can be used to learn more about the audiences who visit
   sites/apps and view ads.

 * CREATE A PERSONALISED CONTENT PROFILE
   
   Switch Label
   
   A profile can be built about you and your interests to show you personalised
   content that is relevant to you.

 * MEASURE CONTENT PERFORMANCE
   
   Switch Label
   
   The performance and effectiveness of content that you see or interact with
   can be measured.

 * CONTENT SELECTION COOKIES
   
   Switch Label
   
   This group is so Content Selection IAB group can have an id

List of IAB Vendors‎ | Detailed Purpose Descriptions Opens in a new Tab
Non-IAB Cookies‎

SOCIAL MEDIA COOKIES

Social Media Cookies

These Cookies are set by social media platforms on the Services to enable you to
share content with your friends and networks. Social media platforms have the
ability to track your online activity outside of the Services. This may impact
the content and messages you see on other websites you visit.

Non-IAB Cookies‎


BACK BUTTON PERFORMANCE COOKIES



Vendor Search Search Icon
Filter Icon

Clear
checkbox label label
Apply Cancel
Consent Leg.Interest
checkbox label label
checkbox label label
checkbox label label


 * 33ACROSS
   
   HOST DESCRIPTION
   
   VIEW COOKIES
   
   
    * Name
      cookie name

Confirm My Choices


We and our partners collect information from your device, such as device
identifiers, IP address, and your browser type to personalize and deliver
content, marketing and advertising—across devices and platforms; for analytics
and measurement, so we can improve our services and develop new ones; to match
and combine offline data with your online activity; and for social features. We
share this information with selected partners with your consent. By clicking “I
accept”, you consent to our use of these Cookies. Click Manage Choices to learn
more about these. We will also use other Cookies that are essential for our site
and Services, including for security and fraud prevention. To learn more about
some of our partners select Show Vendors. You can adjust your preferences at any
time via the “Manage Cookie Preferences” link in the footer of relevant
NBCUniversal websites or in-app settings. Visit our Cookie Notice and Privacy
Policy to learn more.


WE AND OUR PARTNERS PROCESS DATA FOR THE FOLLOWING PURPOSES:

Store and/or access information on a device. Personalised ads, and ad
measurement. Personalised content, content measurement, audience insights, and
product development. List of IAB Vendors

I Accept Manage Choices