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Yellen Says Treasury System Not Built to Prioritize Certain Debt

  • Failure to meet any obligation is effectively default: Yellen
  • Default would ‘undoubtedly’ trigger a US recession, she says
Janet Yellen

Janet Yellen

Photographer: Ting Shen/Bloomberg
Updated on

Treasury Secretary Janet Yellen said the department doesn’t prioritize some bills over others, and that any non-payment of obligations is a default that would “undoubtedly” trigger a recession.

“Failure on the part of the United States to meet any obligation — whether its debt holders, to members of our military or to Social Security recipients — is effectively a default,” Yellen said Friday while speaking with reporters in Dakar, Senegal.