US Treasury Secretary Janet Yellen warned on June 1 that the government could default on the debt ceiling dispute. However, the reserves also could not be used until a few weeks later, and it is impossible to name the exact date with certainty, Yellen wrote yesterday in a letter to Speaker of the US House of Representatives Kevin McCarthy.
The estimate is based on currently available data. The minister warned that it would be detrimental to people’s confidence in the US economy to wait until the last moment to lift or raise the debt ceiling. If the debt ceiling is not raised soon, there could be an unprecedented US government default. This could plunge the global economy into a crisis.
Republicans call for savings on climate protection
Republicans oppose an increase without significant savings. McCarthy wants Democratic President Joe Biden to agree to cuts in certain government spending, such as investments in climate protection. Biden made it clear that he would not be “blackmailed”.