Thursday, June 8, 2023

‘Tick tock, tick tock’ Yellen warns that ‘time is running out to raise US debt limit

Treasury Secretary Janet Yellen reiterated her warning Monday that her department could run out of funds on June 1 unless Congress raises or suspends the federal debt ceiling.

Yellen said, “We continue to anticipate that if Congress does not act to raise or suspend the debt ceiling by early June and potentially by June 1, the Treasury will be unable to meet all of the government’s obligations.” won’t be able to.” A Letter to Congress Leaders

two weeks after your last notice, Yellen said he would report to Congress next week when more information becomes available.

For now, it could be “several days or weeks later” than the beginning of June before the Treasury ends its special accounting maneuvers to stabilize within the debt range.

Joe Biden Prepares for Meeting with Congressional Leaders

Warning Yellen’s statement came amid talks on the matter between White House staffers and advisers to congressional leaders.

House Speaker Kevin McCarthy said on Monday that ongoing negotiations to avoid a historic US default were not yielding results, while President Joe Biden announced plans to meet with congressional leaders on Tuesday.

“We are nowhere close to reaching any conclusion. McCarthy on Capitol Hill, saying he felt the ongoing staff-level meetings were “not productive at all.”

Republicans are demanding broad spending cuts before agreeing to raise the debt ceiling.

Biden He has said he is willing to discuss measures to reduce the fiscal deficit, but they should be addressed separately from the debt ceiling law.

Since the current legal limit of $31.4 trillion was reached in January, the Treasury has been preventing a potential default on federal obligations through special accounting maneuvers.

He Almanac Yellen’s latest update reflects the department’s latest thinking on when this margin is likely to expire. Yellen said on Monday that the evidence of stress in financial markets is already clear.

“We have already seen Treasury borrowing costs increase significantly for securities maturing in early June,” he said. “If Congress does not increase the debt ceiling, it will cause severe hardship for American families, damage our global leadership position, and call into question our ability to protect our national security interests.”

World Nation News Desk
World Nation News Desk
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