Treasurer Sweats Default

Oregon Treasurer Ted Wheeler said a credit default by the federal government would hurt state bonds.

State bonds tied to federal bonds — such as subsidized multifamily housing loans and those repaid in part by federal funds — could be downgraded in tandem with the U.S. government’s rating, according to a statement from the treasurer’s office Tuesday.

“We have reached a critical financial juncture for America and for Oregon,” Wheeler said in the press release. “I ­believe our elected leaders can  and will  put our nation’s interests above politics, because the alternative is unthinkable.”

Wheeler said all investors are in peril because of the risk of a federal default due to gridlock in Washington over raising the debt ceiling.

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