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The head of the US Treasury believes that the country is in danger of default

Date: May 31, 2023 Time: 06:39:36

Yellen insists on raising the national debt ceiling at the right time


US Treasury Secretary Janet Yellen said there is a real threat of sovereign default in the country. And if no action is taken, in June the States will not be able to pay their debt obligations.

To prevent this from happening, the US Congress must decide to raise the government’s debt ceiling. Yellen sent a corresponding letter to legislators.

According to his calculations, the existing debt limit of $31.38 trillion will be completely exhausted in January, but some “extraordinary measures”, such as the temporary suspension of contributions to social and pension funds, as well as existing financial reserves, will allow to hold out until early summer.

The minister warned that a sovereign default would have a very negative impact on the country’s economy, as well as irreparable damage to the welfare of Americans.

In this sense, Yellen insists on the timely raising of the national debt ceiling.

Earlier, White House press secretary Karine Jean-Pierre said congressional Republicans should wholeheartedly support an increase in the debt limit and not try to use solving the problem as an instrument of pressure on the US government.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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