![Fed Chair Powell Warns of 'Highly Uncertain and Adverse' Consequences of US Debt Default — 'We'd Be in Uncharted Territory'](https://news-krypto.de/wp-content/uploads/2023/05/Fed-Chef-warnt-vor-unsicheren-und-nachteiligen-Auswirkungen-eines-US-Schuldenausfalls.jpg)
US Federal Reserve Chairman Jerome Powell has issued a warning on the potential economic consequences of a US debt default, saying that the situation would be "highly uncertain and adverse". Powell cautioned that no-one should assume that the Federal Reserve could protect the US economy in the event of a default, adding that such an occurrence could place the country in "uncharted territory". Powell's warning follows a rate increase of 25 basis points - the Fed's tenth hike in 14 months - while the US debt limit has yet to be resolved. Treasury Secretary Janet Yellen has warned that a US debt default "would produce an economic and financial catastrophe".