US Treasury Secretary Janet Yellen has no doubts. He believes that if Congress does not raise the national debt limit, the US economy will have serious problems.
On January 19, 2023, the United States exceeded the legal limit on public debt. This means that they were de facto frozen. The law does not allow exceeding the statutory debt limit of $31.4 trillion, or about 120 percent. income.
The Treasury Secretary wrote in a letter to Congress that the funds launched are intended to rescue the economy from technical bankruptcy by June 5, 2023. By then, the stalemate in the House of Representatives should be over. “As I indicated in my letter of January 13, the period for which emergency measures may be sufficient is subject to considerable uncertainty. I respectfully urge Congress to act quickly,” Janet Yellen said in a letter.
Deadlock in Congress continues
As you can imagine, the impasse in Congress has not ended, despite warnings from Treasury Secretary and President Joe Biden.
However, the matter is now so serious that Janet Yellen, in an interview with Bloomberg during the G7 conference in Japan, raised the issue even more acutely.
“If Congress does not raise the debt ceiling, we will face financial and economic disaster one way or another. That’s why we’re focused on getting Congress to agree to this. I feel like we can do it. We are working very hard to make this happen - Janet Yellen said.
Biden’s meeting with Congressional leaders postponed
President Joe Biden’s May 12 meeting with Congressional leaders has been postponed. The White House says the move to next week is a good sign. According to the presidential press service, this means that both sides of the political dispute want to continue negotiations and reach an agreement. Joe Biden will only be presented with ready-made solutions.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
