U.S. Treasury Department concerned about the threat of default

The head of the U.S. Treasury Janet Yellen has expressed concern about the threat of default looming over the country, Prime news agency, citing Axios. Such a scenario would be catastrophic and makes her nervous, she said. Earlier in January, the Treasury Department reported that the U.S. had reached the national debt ceiling. In response, the government suspended pension and social contributions and, in addition, the department halted investments in the government's Securities Fund.

A default would be followed by a deepening recession and financial crisis, Yellen said. She sees the solution in another raising of the national debt ceiling, which is also supported by the head of the country Joe Biden. However, not everybody in Congress agrees with this point of view. The Republicans, who control the lower chamber, are against expanding the borrowing limit without reducing spending. Nevertheless, Biden puts pressure on them, ruling out the possibility of negotiations.