‘Potential economic disaster’: Yellen warns of default risks in the US from June 1st

The issue has long become a battleground in the light elections presidential And legislative Next year. never Democrats Do not intend to negotiate with me Republicans Raising or suspending the debt ceiling, on the basis thereof shortening State from June 1 if Congress He won’t agree to that. Sound the alarm for the Republican Speaker of the House Kevin McCarthy She is the secretary to the treasury Janet Yellen. paid move Joe Biden For an urgent meeting in White House On May 9th with the same thing McCarthyDemocratic minority leader in the House of Representatives Hakeem Jeffries And the other two leaders in Capitol Buildingdim Chuck Schumer and republican Mitch McConnell to Senate.

The alarm raised by the Secretary-General treasure On the risk of default in June,” it should be a “wake-up call” for CongressThe White House spokeswoman said, Karen Jean-PierreIndicating that “the time has come” for the Speaker of the House of Representatives Kevin McCarthy And Maga Republicans are a verb to avoid shortening. To this added the president Atmosphere Biden called leaders Congress to discuss it next week. Jean Pierre repeat that discussions It must be done “unconditionally” and that White House He has no intention of negotiating spending cuts in return for raising the debt ceiling, which he said had been raised “three times” in recent yearsTrump administration.

“Our best estimate is that we will no longer be able to cater to everyone Commitments government by early June, possibly as early as June 1,” he warned relents In his letter, noting for the first time a The date specified, After the warning of the possibilityeconomic disaster And Financial” For summer. To speed up time even once collect taxes Less than expected, as revealed Congressional Budget Office (Cbo), a bipartisan federal agency that provides budget estimates to parliament.

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Treasury warning does not automatically mean that since the beginning of June United States of America They will default but to avoid that they will be necessary in the meantime spending cuts To be able to continue paying bills to debtors, avoiding one insolvency That would send disturbing and destabilizing messages to financial markets around the world. Generally, they are the first to be punished services healthy and ai retireeswith the risk of undermining Biden’s re-nomination.

Since the beginning of the sixties United States of America they have The debt ceiling was raised 78 timesmostly without adults discussions. But in recent years, this topic has also become an area of ​​interest battle. And now I am Republicans They did not hesitate to raise it for the tax cut he wanted Donald TrumpLast week, the House of Representatives voted on a bill that would allow the $1.5 trillion cap to be raised, but only in return discount of spending $4.5 trillion over ten years that would hit the agenda Biden: from Care everyone‘clean energy, even increasing taxes on misers and corporations. A political-ideological clash is not easy to resolve in the midst of the election campaign.

Biden For the time being, he remains firm on his position, that is, not to negotiate and increase the ceiling without any conditions, as I reaffirmed today White House. the invoice He did not do an opportunity to pass it on to senate, Where the Democrats have the majority. But you need to find one soon an agreement. And at the same time Dim God room They are trying a procedural attack with a solicitation that might force them to take an action by raising the cap. But at least votes are needed Five Republicans.

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