Friday, June 9, 2023

Yellen warns that the US cannot meet its obligations if it does not raise the debt ceiling

Red raised by the US Treasury. The United States government is in danger of not being able to cope all their financial obligations on June 1 if Congress does not raise or suspend the debt ceiling. This was announced on Tuesday by the Secretary of the US Treasury, Janet Yellen.

“We do not want to continue to comply with all the Government’s obligations at the beginning of June perhaps as early as June 1stif Congress does not lift or suspend the debt limit before this date, “notify the head of the US Treasury” a letter to the President of the ChamberKevin McCarthy, who collects the European Press.

In this regard, Yellen emphasizes that her assessment is based on available data, since federal income and spending are variable in themselves, and the time period in which the Treasury is in effect. He will exhaust the extraordinary plans established “It could be more weeks than these estimates.”

“You won’t be able to pay the bills”

“It is impossible to predict with certainty the exact day when the treasury will not be able to pay the bills of the government”, acknowledges the economist, however, given the current projections, for the secretary of the treasury. “The government has to act as soon as possible.” in a way that provides certainty in the longer term that the Government will continue to meet its payments.

“We have learned from the past that there is a limit to debt constraints.” that waiting until the last minute to suspend or increase the debt limit can cause serious damage to businesses and consumer confidence, increase short-term borrowing costs for taxpayers and negatively affect credit rating of the United States, Yellen said.

In this sense, the former president of the Federal Reserve of the United States advises that if Congress has been does not increase the debt; it would cause severe hardship to American families, the loss of the country’s global role, and uncertainty about its ability to defend its national security.

World Nation News Desk
World Nation News Desk
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