Treasury Secretary Janet Yellen mentioned Sunday that “onerous decisions” will need to be made about which bills will go unpaid if the debt ceiling is not raised.

Yellen reaffirmed her warning that the United States might default on its debt as early as June 1, which she has mentioned might trigger widespread “economic chaos.” There will be no good outcomes if Congress fails to take motion, she mentioned.

“We’re centered on elevating the debt ceiling, and there will be onerous decisions if that does not happen,” she advised NBC’s “Meet the Press.” “There can be no acceptable outcomes if the debt ceiling is not raised, no matter what choices we make.”

Lifting the debt ceiling is needed for the authorities to cowl spending commitments already accepted by Congress and the president so as to stop default. Raising the debt ceiling does not authorize new spending, however House Republicans have mentioned they will not raise the restrict if Biden and lawmakers do not agree to future spending cuts.

As a end result, the on-again, off-again deliberations on Capitol Hill have been tense.

President Joe Biden mentioned Sunday that Republicans “need to move from their extreme position” throughout a press convention forward of his departure from the Group of Seven Summit in Japan. After negotiations stalled late Saturday, Biden mentioned he deliberate to name House Speaker Kevin McCarthy, R-Calif., on his manner again to Washington.

“It’s time for Republicans to settle for that there is no bipartisan deal to be made solely, solely, on their partisan phrases,” Biden mentioned.

McCarthy told reporters on Saturday that the White House had “moved backwards,” including that he did not assume negotiations would be ready to transfer ahead till Biden returned to the U.S.

At the Independent Community Bankers of America Capital Summit Tuesday, Yellen said the White House Council of Economic Advisers discovered {that a} default may lead to an financial downturn as unhealthy as the Great Recession, with 8 million Americans dropping their jobs and the inventory market’s worth falling by about 45%.

She additionally famous a Moody’s Analytics report which discovered comparable numbers with greater than 7 million Americans out of labor and $10 trillion in family wealth evaporated. Yellen additionally warned {that a} debt ceiling breach might have an effect on important authorities companies.

Biden mentioned Sunday he thinks an settlement can be reached with Republicans, however that it is not sure.

“I am unable to assure that they would not drive a default by doing one thing outrageous,” he mentioned.