Yellen Says It Would Be a ‘Catastrophe’ if Debt Ceiling Isn’t Raised

The transcript discusses the reinstatement of the debt limit and the Treasury's use of extraordinary measures to prevent a default. It highlights the political dynamics between Republicans and Democrats regarding the debt ceiling and emphasizes the importance of bipartisan support. The speaker shares personal experiences with past debt ceiling increases and notes the recent outreach from the administration.

What measures did the Treasury take to avoid a default after the debt limit was reinstated?

• Reduced government spending

• Extraordinary measures

• Increased taxes

• Borrowed from international banks

What is the main political issue discussed regarding the debt ceiling?

• The impact of international trade agreements

• The need for a new fiscal plan

• Democrats seeking Republican support to raise the debt ceiling

• Republicans wanting to lower taxes

Why does Secretary Yellen believe raising the debt ceiling should be a bipartisan effort?

• To increase government spending

• To reduce the national debt

• Because both parties have historically contributed to budget deficits

• To ensure future tax plans are enacted

What historical context is provided to support the need for bipartisanship in raising the debt ceiling?

• Neither party has run budget deficits in the post-war period

• Both parties have run budget deficits in the post-war period

• Only Republican administrations have run budget deficits

• Only Democratic administrations have run budget deficits

What was the nature of the outreach from the current administration regarding the debt ceiling?

• A detailed fiscal plan was proposed

• A reduction in government spending was discussed

• A request for bipartisan support was made

• An increase in taxes was suggested