Treasury Secretary Janet Yellen fears the U.S will face a recession if Congress doesn’t address raising the debt ceiling before a possible upcoming default. She told “Squawk Box” that it would be “catastrophic to not pay the government’s bills.” In other news, one expert believes a serious market crash is coming this month. Robert Kiyosaki told Kitco News, “It’s going to be the biggest crash in world history.”
CNBC News/Thomas Franck
U.S. faces a recession if Congress doesn’t address the debt limit within 2 weeks, Yellen says
Treasury Secretary Janet Yellen on Tuesday said she believes the economy would fall into a recession if Congress fails to address the borrowing limit before an unprecedented default on the U.S. debt.
“I do regard Oct. 18 as a deadline. It would be catastrophic to not pay the government’s bills, for us to be in a position where we lacked the resources to pay the government’s bills,” Yellen said during a “Squawk Box” interview.
President Joe Biden on Monday called on Congress to raise the debt limit this week and avoid even approaching near-certain economic turmoil. He blamed Republicans and Senate Minority Leader Mitch McConnell, R-Ky., for standing in the way of legislation that would lift the borrowing cap through a filibuster.
“I fully expect it would cause a recession as well,” Yellen added Tuesday.
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Robert Kiyosaki: ‘The biggest crash in world history’ hits this October
The whole market, including Bitcoin, gold, stocks, is about to face a serious crash in October, said Robert Kiyosaki, best-selling author of “Rich Dad Poor Dad”.
Speaking to Michelle Makori, editor-in-chief of Kitco News, Kiyosaki explained the factors in the economy that have been leading up to this upcoming crash and highlighted the severity of the market downturn that’s to come.
“It’s going to be the biggest crash in world history. We have never had this much debt pumped up. Debt is the biggest problem of all…the debt to GDP ratio is out of sync. So when it comes down, and it’s going to bring everything down with it, that’s when I’m going to be buying more gold, silver, and Bitcoin,” Kiyosaki said. “The S&P 500 is really the S&P 7 and it’s being held up by Secretary of the Treasury Yellen and [Fed Chair] Powell. There’s no correlation between the economy and what Yellen and Powell are doing.”
He stressed that this market crash will see prices rebound afterward, and noted that this could be a good buying opportunity, but only for certain assets.
Continue reading, here.
Yahoo Finance/Adam Shapiro
Trump warns on ‘scary’ inflation, says surging prices will ‘ravage our country’
Former President Donald Trump told Yahoo Finance that inflation is one of the issues that will help him determine if he will run for the Republican presidential nomination in 2024.
Soaring prices have become a fixture of the pandemic-era recovery, with supply and labor bottlenecks converging with strong global demand to push up inflation.
In an exclusive interview with Yahoo Finance Live on Friday, Trump zeroed in on spiking energy prices, with crude (CL=F) recently flirting with $80 per barrel. On Monday, oil futures spiked to their highest levels since 2014.
“And it’s very scary when you look at gasoline from $1.87 a gallon when I was president, it went from $1.87 and now it’s well over $5 that it’s going to go a lot higher,” the 45th President predicted.
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