Neal’s remarks come as President Joe Biden and Republican congressional leaders wrangle over whether and under what terms to increase the U.S. debt ceiling to avoid a default. A failure by the U.S. to pay its debts would likely roil credit markets worldwide and potentially trigger a severe recession, according to U.S. Treasury officials. The partisan jockeying over the debt limit is closing in on a June 1 deadline.
Policymakers’ decisions will determine whether the U.S. dollar continues to be the dominant global currency, Neal said, and she pointed to the domestic benefits that flow from that being the case.
