It is “almost certain” that the US will default in early June if Congress fails to agree on the debt ceiling. This was reiterated by US Treasury Secretary Janet Yellen, who may soon provide Senators and Congressmen with a more accurate update on when the United States will run out of money to meet its financial obligations.
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Speaking at an event organized by the Wall Street Journal in London, Yellen said: “The Treasury Department and President Biden will face very difficult decisions if Congress does not take action to raise the debt ceiling and if we reach the so-called X-date without that.” this is the case.” There will be some obligations that we cannot pay.”
Yellen declined to explain exactly how she would proceed if the debt ceiling were not raised, but dismissed the idea that “prioritizing” certain payments the government is obligated to make would be an easy fix: “prioritization is not operationally feasible.” Because Yellen continues to believe that “an agreement is possible, they are working toward an understanding that will require bipartisan support.”
But amid the uncertainty, Rep. Abigail Spanberger, a former CIA agent, and fellow Republican Brain Fitzpatrick are hoping to break the deadlock in debt-ceiling negotiations by introducing a provocative bill: a freeze on congressional and state salaries Senators in the event of a federal government default or shutdown. “If Congress is not fulfilling its basic responsibilities related to the strength and security of our country,” Spanberger said, “its members must not be paid until they have done their jobs.” American workers know this well: if you don’t do your work do it, don’t do it. I’m not getting paid.”