US officials, including President Joe Biden and House Speaker Kevin McCarthy, have little time to avert economic disaster due to their reluctance to raise the public debt curtain. Some members of the Republican Party still insist on a radical reduction in government spending rather than increasing the national debt cap. opens Words from Janet Yellen Bloomberg, Head of the Finance Ministry (MoF).
The US authorities’ lack of a compromise solution regarding the fate of the growing national debt has already led to a relative outflow of foreign and local investors. At the same time, the American minister complained that the “stalemate” around public debt continues to increase the debt burden of ordinary citizens of the country.
“U.S. authorities are running out of time to prevent an economic disaster due to their inability to raise the national debt ceiling. We’re already seeing the results of Brinkmanship: investors have become more reluctant to hold on to government debt, which is due in early June. Yellen noted that the stalemate has already increased the debt burden of American taxpayers.
May 9 US Treasury Secretary Janet Yellen warned About the risk of economic chaos in the country if the US authorities refuse to raise the public debt limit. At the same time, President Joe Biden can still use the 14th Amendment to the Constitution, which allows to avoid a default by bypassing the position of the legislature.