Yellen Says Treasury System Not Built to Prioritize Certain Debt

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.