US Treasury Secretary Janet Yellen said US President Joe Biden would have to act if Congress didn’t raise the debt ceiling. CNBC.
“If Congress doesn’t raise the debt ceiling, the president will have to decide what to do with the resources we have,” he said.
He pointed out that Biden could use the 14th amendment to the Constitution, which allows to avoid a default by bypassing the position of the legislature, but that this could lead to a crisis in the country.
Yellen believes that if Congress doesn’t raise the bar, “no good options are left.”
“We will not have the money to meet all our obligations. <…> “Fiscal and economic chaos will follow.”
Last week, U.S. House of Representatives Speaker Kevin McCarthy accused President Biden’s reluctance to deal with US national debt issues.
Former economist Mikhail Belyaev declarationIn the United States, there is a high probability of default that will affect many countries, due to the lack of sufficient impetus for the growth of public debt and the development of the economy.
By contrast, Kyle Szostak, director of the American investment firm Navigator Principal Investors registeredThat the situation in the US public debt could lead to the depreciation of the dollar.