The United States will lose the money to pay its financial commitments by June 5. Treasury Secretary Janet Yellen denoted Republican leaders in the House of Representatives on Friday during continuing negotiations to increase the debt ceiling.
The deadline was pushed four days later than the Treasury Department’s earlier estimates, with Yellen informing House Speaker Kevin McCarthy that her department now estimates that the Treasury will not have adequate resources to meet the government’s commitments if Congress does not increase or stop the debt limit by June 5., reports Anadolu Agency.
Yellen stated that they learned from the background of extending deadlines that remaining until the last moment to stop or expand the debt limit can seriously harm business and consumer confidence. Expanding short-term borrowing costs for taxpayers could adversely impact the US credit rating. She also cautioned that if Congress fails to increase the debt limit, it would provoke serious difficulty for American families, damage the US’s global leadership position and call into question the capability to defend national security.
US President Joe Biden and McCarthy optimistically noted on Thursday that an arrangement was within reach.
Biden has long claimed lawmakers should increase the $31.4 trillion debt limit through a “clean bill.” Nevertheless, Republicans who handle the House of Representatives have persisted in pairing any efforts to do so with spending cuts.
The cap was acquired in January, but the Treasury Department has taken steps to provide the US continues to pay its bills.
Fitch announced a possible downgrade of the US credit rating
The Fitch rating agency announced that it could lower the US – AAA’s credit rating if the White House and Congress do not agree on raising or suspending the borrowing limit in the coming days.
The US Department of the Treasury has repeatedly warned that it could have problems meeting its financial obligations as early as the beginning of June.
Negotiations between the administration of President Joe Biden and the Republicans in the House of Representatives of Congress are stuck in an impasse, and there are still seven days left until the deadline.
