2023-05-07 14:41:55
US Treasury Secretary Janet Yellen has warned that the absence of measures for the national debt ceiling could provoke a “constitutional crisis” with consequences for financial markets and interest rates. The government can pay bills without increasing the national debt limit only until the beginning of June, Ms. Yellen reminded. On May 1, the minister notified Congress that the US could default on its debt on June 1.
In an interview with > «This Week» Janet Yellen said debt ceiling talks should not be held “with a gun to the head of the American people.” “Since 1960, the debt ceiling has been raised 78 times, three times under the previous administration, always bipartisan. And it is simply unacceptable for Congress to threaten economic disaster to US households and the global financial system as the price of raising the debt ceiling and agreeing on fiscal priorities,” Ms. Yellen said.
“We have been implementing emergency measures for several months now, and our ability to do so is running out. And we will start to run out of cash, and our current forecast is that in early June there will be a day when we will not be able to pay our bills if Congress does not raise the debt ceiling, ”she said.
Deputy Treasury Secretary Wally Adeyemo also spoke about default risks during an interview on MSNBC’s The Sunday Show. “A default is a disaster for the United States,” Mr. Adeyemo said. “If we defaulted on our debt, it would have a terrible impact on interest rates,” he said.
On May 9, US President Joe Biden will discuss the current situation with representatives of the Democratic and Republican parties at the White House, Archyde.com reports.
Former Minister of Finance warned Congress that the US could default on its debt as early as June 1 if lawmakers don’t raise the $31.4 trillion limit on borrowing.
In February, the Congress said that the country could run out of funds to service its external debt between July and September if the debt limit is not raised.
Read more in the publication “Kommersant” “Democrats run the risk of remaining in debt.”
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