As Congress again wrestles over raising the level of debt the government can incur, Federal Reserve Chairman Jerome Powell cringed at what would happen if it fails to do so.
“It’s beyond even consideration. The idea that the U.S. would not honor all of its obligations and pay them when due is something that can’t even be considered,” the central bank leader said Tuesday in response to a question from Sen. Jon Tester (D-Montana).
The debt limit would come back into effect March 2 should Congress not enact legislation allowing for more borrowing.
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