“Now that Congress has acted to suspend the debt limit, Treasury has the tools to ensure that the United States continues to meet all of its obligations.”said the Treasury spokesman, Christopher Haydenin a statement sent by email.
Treasury Secretary, Janet Yellenhad stated in early May that if Congress did not approve raising the debt ceiling, the United States could enter into default begining of June.
“Our best estimate is that we will be unable to continue to meet all government obligations in early June, and potentially as soon as June 1, if Congress does not raise or suspend the debt limit before then,” he said. Yellen in a letter to the Speaker of the House of Representatives, Kevin McCarthy.
US debt ceiling: Congress approved the project
The The House of Representatives and the Senate approved the law. last week after Biden and the Speaker of the House of Representatives, kevin mccarthyThey reached an agreement after tense negotiations.
The announcement was made on prime time television and behind the historic desk of the oval room. In this way, in a live broadcast, Biden assured that he bipartisan agreement It was a compromise that “nobody got what they wanted”. In the United States, presidents always reserve the renowned hall for moments of grave danger or national importance.
The law that was reached
Congress this week adopted a bill that suspends the federal debt ceiling until January 2025, enough to get through the 2024 presidential elections without repeating the fight. It was the result of weeks of arduous negotiations between Biden and the Republican leader of the House of Representatives, Kevin McCarthyin which the Democrats accused the Republicans of taking the US economy as hostage by insisting on cutting spending to accompany the increase in the debt limit.
Said standard sets certain limits on federal spending and foresees a reduction of US$10,000 million in the funds assigned to the treasury to modernize and intensify controls. “Find a consensus beyond partisan differences is difficult. Unity is hard but we should never stop tryingthe 80-year-old Democrat said in his short speech.
without the agreement, The United States risked a default or cessation of payments of its obligations from Monday, June 5, the deadline set by the Treasury. This would probably have triggered the panic in the marketshuge job losses and a recession, with global implications. “Nothing would have been more irresponsible or more catastrophic”said the president.
Source: Ambito
