“It will be devastating, it will be a disaster,” she answered a question about the consequences of a default in the country in an interview with Axios.

According to Yellen, following a possible default, the US economy will face a "spiraling" recession along with a financial crisis.

United States spending will have to cut to match tax revenue, she added.

Earlier, Yellen said that the leadership of the US Federal Reserve will reject the idea of ​​​​minting a $1 trillion coin, even if the Joe Biden administration decides to take such a step in order to avoid a default.

On January 19, the White House announced that Biden did not intend to negotiate on the US national debt.

On October 4, the US national debt exceeded $31 trillion for the first time.