May 23, 2024

Brighton Journal

Complete News World

Janet Yellen promised that the US could return to default on June 1

Janet Yellen promised that the US could return to default on June 1

If the debt ceiling is not raised or suspended by Congress before the current limit expires, the government risks defaulting on its payment obligations, with profound implications for the economy.

Janet Yellen

America can enter default In early June, this Monday was promised Treasury Secretary Janet Yellen When politicians wrestle An increase in the government’s borrowing limit.

Last week, Republicans voted to raise the national debt ceiling, but with drastic budget cuts as they sought to confront a Democratic president. Joe Biden For “excessive” spending.

Despite the US hitting its debt ceiling of $31.4 trillion in January, the Treasury took extraordinary steps to allow it to continue funding government operations.

If the debt ceiling is not raised or suspended by Congress, the current limit will expire. The government risks defaulting on its payment obligations, with profound implications for the economy.

“Our best estimate is that we will not be able to continue to meet all government obligations by the beginning of June, and before June 1, unless Congress raises or suspends the debt ceiling.”In a letter to the Speaker of the House of Representatives, Yellen wrote, Kevin McCarthy.

“Given the current outlook, it is imperative that Congress act quickly to raise or suspend the debt ceiling to provide long-term certainty that the government will continue to meet its payments,” Yellen said.