Social Security and the Debt Ceiling: Mixed Opinions on Potential Impact - MarketWatch
The lack of movement on the rapidly approaching debt-ceiling crisis is causing a stir in the minds of many folks, especially those receiving Social Security benefits. And while several competing viewpoints have emerged, it appears that May 9 may mark an opportunity for at least some sense of direction on the issue. According to a post by MarketWatch retirement reporter Jessica Hall, that’s when President Joe Biden has invited House Speaker Kevin McCarthy, and others, to Washington for discussion on the subject..
In the meantime, officials like U.S. Treasury Secretary Janet Yellen have signaled the possibility a debt default could make it “…unlikely that the federal government would be able to issue payments to millions of Americans, including our military families and seniors who rely on Social Security.” On the other hand, Jason Fichtner, vice president and chief economist at the Bipartisan Policy Center, offered that, “There’s plenty of things to scare senior citizens about that are real, like the stock market, their 401(k)s, a possible recession. Let’s not lie about Social Security benefits—they will get paid.”
So, in the midst of these opinions, and others, the American public remains in a wait-and-see mode. Stay tuned for further reports after next week’s White House meeting.