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.