Impending US Debt Default Threatens Severe Economic Consequences

The White House Council of Economic Advisers has warned of the potential damage to the US economy and taxpayers if the government fails to raise the nation's debt limit. The council identified three scenarios of varying severity, with a protracted default resulting in a Great Recession-like doomsday scenario, leading to 8.3 million job losses and a 45% fall in the stock market. In every scenario, US economic growth turns negative, leading to the beginning of a possible recessionary period. Federal Reserve Chair Jerome Powell refused to accept that any of the scenarios were possible.