federal workers shutdown mortgage defaults

#Federal workers shutdown mortgage defaults full#

“Tens of millions of people across the country who expect payments from the federal government may not get them on time,” said Shai Akabas, director of economic policy at the Bipartisan Policy Center.

Much would also depend on how long it takes Congress to address the borrowing cap.

Treasury would have the funds to satisfy some obligations, but it’s not certain how the agency would handle the disbursements. To be clear, a debt default doesn’t mean all payments would stop and people would permanently lose out on money they are owed. “If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests,” she wrote. Yellen gave a sense of the turmoil it would cause in her letter to House Speaker Kevin McCarthy on Monday. A close call in 2011 roiled the financial markets and prompted Standard & Poor’s to downgrade the US’ credit rating to AA+ from AAA. Just what would happen if the nation defaults on its debt is unknown since it’s never actually happened before. The US hit its $31.4 trillion debt ceiling in January, and Treasury has been using cash and “extraordinary measures” to satisfy obligations since then. However, the forecast was uncertain, and the default date might come several weeks later, she said.

#Federal workers shutdown mortgage defaults full#

Treasury Secretary Janet Yellen warned Monday that the government may not be able to pay all of its bills in full and on time as soon as June 1. President Joe Biden and House Republicans may have as little as a month to prevent the US from defaulting on its debt, which would impact millions of Americans and unleash economic and fiscal chaos here and around the world.