Yellen warns that the US will not be able to meet its obligations in June if the debt ceiling is not raised

Treasury Secretary Janet Yellen said Monday that the United States will not be able to meet its financial obligations in June if it does not raise or suspend the debt ceiling limit

The United States Government runs the risk of not being able to meet all of its financial obligations as soon as June 1 if Congress does not raise or suspend the limit for the debt ceiling, as warned by the Secretary of the US Treasury, Janet Yellen.

“We will not be able to continue to meet all government obligations in early June, and possibly as soon as June 1, if Congress does not raise or suspend the debt limit before that date,” warns the head of the US Treasury. in a letter sent to House Speaker Kevin McCarthy.

In this sense, Yellen stresses that her estimate is based on currently available data, since federal revenues and expenditures are inherently variable, and the actual date on which the Treasury will exhaust the established extraordinary measures “could be several weeks later than these estimates”.

“It is impossible to predict with certainty the exact date on which the Treasury will not be able to pay government bills,” acknowledges the economist, although, given current projections, for the Treasury secretary “it is imperative that Congress act as soon as possible” in a way that provides certainty in the longer term that the Government will continue to meet its payments.

“We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious damage to business and consumer confidence, increase borrowing costs in the short term for taxpayers and negatively affect the credit rating of the United States,” says Yellen.

In this sense, the former president of the Federal Reserve of the United States warns that if Congress does not increase the debt limit, it would cause serious difficulties for American families, it would damage the position of world leadership of the country, and it would raise doubts about its ability to defend their national security interests.

Source: dpa

(Reference image source: Brandon Mowinkel, Unsplash)

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