US could face debt crisis this summer without deal, warns Bureau of Budget

The Congressional Budget Office said Wednesday that the US Treasury Department will exhaust its ability to pay its bills sometime between July and September unless the current $31.4 trillion limit is raised or suspended. for loans.

In a report released alongside its annual budget outlook, the nonpartisan budget office, also known as the CBO, warned that a historic federal debt default could occur before July if revenue flows to the Treasury in April, when most of Americans typically file annual income tax returns. — Delay expectations.

The pace of incoming revenue, coupled with how the US economy will perform in the coming months, makes it difficult for government officials to predict the exact “date X,” when the Treasury could start defaulting on many debt payments without congressional action.

“If the debt limit is not raised or suspended before the extraordinary measures are exhausted, the government will not be able to pay its obligations in full,” the budget office report said. “As a result, the government would have to delay payments for some activities, default on its debt obligations, or both.”

Separately, the budget office said annual US budget deficits will average $2 trillion between 2024 and 2033, approaching pandemic-era records by the end of the decade, a forecast likely to stoke Republican demands. of more spending cuts.

Most Americans aren’t closely following Washington’s debt ceiling saga, but still worry it could hurt their finances, according to a Reuters/Ipsos public opinion poll conducted February 6-13.

Fifty-five percent of American adults said they had heard little or nothing about the debate, but three-quarters of those surveyed said Congress needs to come to an agreement because late payments would increase financial stress on their families, in much through potentially higher borrowing costs.

[Con información de Reuters]

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