Treasury Secretary Janet Yellen said the deadline for raising the debt ceiling is almost certain to be early June as lawmakers try to reach a deal to raise the ceiling before the country defaults. Stated.
Yellen told The Wall Street Journal’s CEO Council Summit on Wednesday that the U.S. must not default on its debts and that to continue U.S. leadership in the global economy and the role of the U.S. dollar in the global economy, the U.S. He said it was important to keep paying the debt. world.
“It seems almost certain that we won’t get through early June,” she said.
Yellen said the U.S. could default on its debt for the first time in history as early as June 1 if no deal is reached on raising the debt ceiling. He and other members of the Biden administration have warned that a default would likely plunge the country into a recession with far-reaching implications for the global economy.
But some Republican lawmakers have recently questioned June 1 as the exact deadline for the deal, and have asked to see how Ms Yellen came up with that date.
Rep. Patrick McHenry, RN.C., chairman of the House Financial Services Committee and one of the key Republican negotiators, said, “We want to trust the Treasury Department’s calculations, but the Treasury Department is not the result. will have to be shown,” he said. He said the White House didn’t seem to have any urgency to reach a deal, and that the June 1 deadline raised questions.
Other House Republicans, including Rep. Matt Gates (Florida) and Rep. Ralph Norman (South Carolina), also have questions.
Republicans are demanding drastic cuts in federal spending in exchange for voting for a higher cap, but the Biden administration is trying to keep cuts to a minimum.
Yellen said raising the debt ceiling would prevent the government from taking on more debt, but would allow it to repay the debt it has already incurred.
“Basically, we bought things on our credit card and they say we can’t pay our credit card bill. no,” she said.
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