US debt reaches ceiling and default fears

Treasury Secretary Janet Yellen warned on Friday that the United States may have to take “extraordinary measures” next week to avoid default.

In an email to Republican House Speaker Kevin McCarthy, Yellen said her department is “preparing to pass the first interim measures this month” as the country could default if the debt ceiling is not passed by the government. Congress is dissolved. avoided.

“The inability to meet government obligations is irreparably damaging to the US economy, the livelihoods of all Americans and global finances,” Yellen said. The United States of America.

Republicans can turn back the clock to force Democrats to waive certain spending, which are approved for the newly formed legislature.

“Spending is out of control, there is no oversight and it can’t go on like this,” McCarthy said. “We need to change the way we recklessly spend money in this country and we will make sure that happens,” he said. Pennsylvania Democrat Brendan Boyle criticized Republicans for “seeing it normal to hold the economy hostage to force unpopular and extremist reforms.”

The White House urged Congress, where Republicans control the House of Commons, to increase the country’s borrowing capacity and warned it would not negotiate to get an affirmative vote. Lawmakers have raised or even removed this limit 78 times without much effort since 1960. However, in December 2021, there was a great tension between the two sides. AFP

Source: Ultimahora

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