USA could incur a default on its debt at the beginning of June, said Monday May 1 Treasury Secretary Janet Yellen while politicians tussle over raising the government’s borrowing limit.
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Last week, Republicans voted to raise the national debt limit but with drastic budget cuts, as they sought to confront the Democratic president. Joe Biden for the expense”excessive“.
Although the United States reached in January its debt limit of 31.4 trillion of dollars, the Treasury took extraordinary measures that allow it to continue financing the activities of the Government.
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If the debt ceiling is not raised or suspended by Congress before the current one runs out, the government risks defaulting on its payment obligations, with profound implications for the economy.
“Our best estimate is that we will be unable to continue to meet all government obligations in early June, and potentially as soon as June 1, if Congress does not raise or suspend the debt limit before then.Yellen said in a letter to the House Speaker Kevin McCarthy.
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“Given current prospects, it is imperative that Congress act as soon as possible to raise or suspend the debt limit to provide longer-term certainty that the government will continue to meet its payments.Yellen added.
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AFP
