Cuellar weighs in on potential financial crisis if debt ceiling agreement isn’t reached

LAREDO, Tx. (KGNS) - The U.S. Treasury Secretary warns of a global financial crisis if an agreement is not reached on the debt ceiling.

On Thursday, the U.S. finally reached its borrowing limit.

According to NBC, as a result, the Treasury Department has had to take what it calls “Extraordinary measures” to make sure the nation can continue borrowing under the federal debt limit and pay its bills but those measure could run out in June.

On Friday, Congressman Henry Cuellar said Americans should be worried if the debt ceiling is not raised.

“If the credit rate of the United States is downgraded it could affect, it could affect a recession it could affect the stock market so if you have investments the stock market could go down,” said Cuellar. “We don’t want to play this type of game but there is a new right-wingers that want to play this game and I hope we don’t do that.”

The new Republican house majority demands conservative policy concessions in the form of spending cuts to lift the debt ceiling, but the White House has made it clear that they aren’t willing to negotiate on this.

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