The pandemic has left the US economic system in a precarious state, however one other disaster is looming that would push the nation into an financial disaster: the debt ceiling. With the federal government set to expire of money in early June, if Congress fails to lift it, U.S. Treasury Secretary Janet Yellen has issued a dire warning of what may occur if motion just isn’t taken.
Debt Ceiling Looms- Warns Janet
In an unique interview with ABC Information, Yellen issued a powerful plea to Congress, urging them to behave earlier than the federal government runs out of money in early June.
“The failure to lift the debt ceiling would create an unprecedented scenario in American historical past, the place the nation can be incapable of fulfilling its obligations, together with funds to Social Safety recipients and Medicare suppliers, and curiosity funds due on the debt. The outcomes of such an occasion could possibly be catastrophic, resulting in in depth monetary and financial turmoil.” Warns Yellen.
The stakes are excessive!
Final month, Home Republicans handed a invoice to lift the debt ceiling by $1.5 trillion, however it comes with the situation that President Joe Biden indicators off on deep spending cuts. Nevertheless, Biden has reportedly refused to interact in negotiations that tie spending cuts to the debt ceiling. This places Congress in a tough spot because the clock is ticking and the implications of not elevating the debt ceiling could possibly be disastrous.
With the clock ticking, it’s as much as Congress to provide you with an answer earlier than it’s too late. Biden is ready to satisfy with Congressional leaders quickly, and the stakes couldn’t be greater.