Treasury Secretary Janet Yellen warned members that the country’s cash reserves would probably run out, if lawmakers do not vote by Oct. 18, after parliament passed legislation Wednesday to suspend the country’s arrow limits.
In a 219-212 vote, lawmakers voted to pass a measure to suspend the U.S. federal debt limit by mid-December next year. It comes just weeks before the deadline, however, the Senate is expected to take action.
Two Democrats and one Republican crossed the party line in their vote on Wednesday afternoon. Reps. Kurt Schrader (D-Ore.) And Jared Golden (D-Maine) voted “no” to the measure, while Republican Adam Kinsinger (R-Il.) Was the only Republican to vote to postpone the bill.
The law is now in the Senate, but Senate Minority Leader Mitch McConnell (R-Ki.) And other Republican leaders said Sept. 22 that Senate Republicans would not vote to raise the country’s debt ceiling because of Democrats’ plans. Costs trillions of dollars.
Yellen warned on Tuesday that if the Oct. 1 deadline expires without lawmakers voting to raise or suspend the 18th limit, “we hope the Treasury will leave very limited assets that will expire quickly.”
“It is uncertain whether we will be able to meet all the commitments of the country after that date,” he added.
There could be “substantial disruption” in the stock market, which will “erode investor confidence” and increase volatility, Yellen wrote. According to his office, the federal government spends an average of about িয়ন 50 billion a day and surpassed times00 billion dollars for daily spending last year.
He added: “We know from previous debt limitations that waiting until the last minute can cause serious damage to business and consumer confidence, increase orrow costs for taxpayers and negatively affect US credit ratings over the next few years.”
Democrats and Republicans suspended the debt ceiling in 2019, which was signed by then-President Donald Trump. The ceiling was suspended for two years, but has been in effect since July 1. According to the Congressional Budget Office, the ceiling is the maximum amount that the Treasury Department can issue to the public or other federal agencies. It was reset to 21 22 trillion in 2021, as well as the orrow that was taken during the suspension.
“As default is getting closer and closer to becoming a reality, our Republican colleagues will be forced to ask themselves how long they will continue to play the political game when our country’s economic stability is at stake,” said Senate Majority Leader Chuck Schumer (DN) .Y. Said.
Jacqueline Steiber contributed to this report.
This News Originally From – The Epoch Times