Yellen warned of the risk of economic chaos in the United States
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If the administration of US President Joe Biden and Parliament fail to agree on raising the national debt ceiling, the country risks facing financial and economic chaos. stated U.S. Treasury Secretary Janet Yellen on ABC News’ This Week.
“According to our latest forecast, there will be a day in early June when we will no longer be able to pay our bills unless Congress raises the debt ceiling, so I strongly urge Congress to take this decision,” she said.
According to her, the US authorities have already taken emergency measures in order to avoid a default, but in the future it will be necessary to increase the national debt ceiling.
“There is a broad consensus that this [отсутствие решения по потолку госдолга] will lead to financial and economic chaos,” Yellen warned.
Members of the US Congress have recently tried to work out a common position on the debt ceiling, which will allow the US to make payments on the national debt on time, but negotiations have stalled.
The House of Representatives (the lower house of the US Parliament) at the end of April approved a bill to raise the public debt limit, but with a significant tightening of budget policy, including a reduction in government spending. In the House of Representatives, the Republicans have a majority, in order for the law to pass further, it must be approved in the Senate, where Democrats predominate. The bill, announced by Republican Speaker of the House Kevin McCarthy, raises the ceiling by $1.5 trillion but cuts spending by $4.5 trillion. Democrats do not support the proposal.
On May 9, President Joe Biden will meet with Democratic and Republican leaders of both houses of Congress.
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