Yellen Expects "A Solution Will Eventually Be Found" to US Default Risk

U.S. Treasury Secretary Janet Yellen stated on the 12th that although the confrontation over raising the federal government debt ceiling is serious, a solution will ultimately be found to avoid a default.

[Image source=Yonhap News]

Attending the Group of Seven (G7) finance ministers' meeting held in Niigata, Japan, Secretary Yellen said in an interview with foreign media, "It is clear that the current situation is not positive for the (United States') relationships, status, and credibility worldwide," adding, "This may be a more difficult situation than in the past."

Secretary Yellen added, "I hope this situation will be resolved in the same way as previous crises eventually were," and "We hope to find a solution. That is what we are focusing on."

The current U.S. government debt ceiling stands at $31.4 trillion (approximately 42,201.6 trillion won). The so-called 'X-Date,' the default deadline set by the U.S. Treasury, is on the 1st of next month, but the Democratic administration and the opposition Republican Party still have differing views on the debt ceiling issue.

The White House maintains the position that conditions cannot be attached to raising the debt ceiling, but the Republican Party, which holds the majority in the House of Representatives, insists that government budget cuts must accompany any increase in the debt ceiling.

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