US Treasury Secretary Janet Yellen has warned Congress that the US government will not be able to meet its obligations if the national debt ceiling is not raised.
“We consider it highly likely that the Treasury will not be able to fulfill all government obligations unless Congress takes action to raise or suspend the debt limit in early June,” Yellen said in a letter to House Speaker Kevin McCarthy on Monday. .
She added, “These estimates are based on currently available data, and federal receipts, spending, and debt may differ from these estimates,” noting that she will continue to update Congress on the most recent information that becomes available.
“We have learned from past debt woes that waiting until the last minute for a suspension or increase in the debt limit can severely damage business and consumer confidence, the cost of emergency loans for taxpayers, and adversely affect the credit rating of the United States. “, Yellen said.
She warned that “failing to increase the debt limit will create great hardship for American families, damage our position as a global leader, and call into question our ability to protect our national security interests.”
The Secretary urged Congress to “protect the full confidence and reputation of the United States by acting with all speed.”
This comes amid intermittent consultations between the Republican congressional team and the administration of US President Joe Biden on the terms of raising the US debt ceiling, currently set at $31.4 trillion, which the US government reached last January and was forced to take urgent action. to avoid default on the public debt.
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