Washington DC ∙ US Treasury Secretary Janet Yellen said that the US government has run out of money for Social Security and veteran benefits. According to the report, the government will run out of money for Social Security payouts and the needs of retired soldiers as summer begins. There has been a lot of debate in Congress about whether or not to raise the debt ceiling, but Janet Yellen has made it clear that the Treasury will not be able to meet obligations for Social Security, the military, and other benefits unless it is approved by a vote.
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US Treasury Secretary Janet Yellen said that a government default would be a ‘disaster’ for the US. “The federal government is unlikely to make payments to millions of Americans, including our military families and seniors who rely on Social Security,” Janet Yellen said.
Interest rates on mortgages, auto loans, and credit card rates will continue to rise in the United States. House Speaker Kevin McCarthy has already stated that Republicans have no obligation to repay the government’s debts. He said federal spending must be cut and they won’t pass the “clean debt ceiling” proposed by the Biden administration.
In a speech at the National Association of Counties conference in Washington, Biden used the word “catastrophe” to describe the state of the US if the government is unstable. “It will increase the cost of borrowing, making it difficult to finance major projects in communities,” he said.
English Summary: Millions of seniors on Social Security are at risk of losing benefits