Washington: The US Treasury Secretary Janet Yellen has warned that the US economy could ‘default’ if it fails to lift the debt ceiling in the coming days. Congress had set a debt ceiling of $31.4 trillion in 2021. Treasury Secretary Yellen pointed out that this limit expires on January 19, after which the Treasury Department will be forced to implement some extraordinary measures. In the last few months, there have been constant warnings that the US economy is moving towards recession. Against this background, the warning about the economy going into ‘default’ draws attention.
Moreover, Treasury Secretary Yellen has written a letter addressed to the US Congress, in which attention has been drawn to the danger of the US economy going into ‘default’. After reaching the debt limit on January 19, the Biden administration will not be able to raise new debt. Various measures will be taken to control the expenditure in such a situation. But these measures can continue till June. After that, the administration will be forced to repay the debt; if it does not, the economy will be labelled as a debt-ridden economy’; the Treasury Secretary made a serious realization through the letter.
The US Treasury Secretary Janet Yellen has also warned that the risk of debt default could seriously impact the economy. 
The White House has responded to Treasury Secretary Yellen’s letter and said that the bill would be introduced in Congress soon. However, the media has predicted the possibility of a tremendous political conflict in the Parliament over the bill to increase the debt limit.
The Republican Party has warned that spending limits will also have to be imposed if the debt limit is to be increased. Kevin McCarthy, the speaker of the House of Representatives, warned that we would change the administration’s spending. If this happens, some of the plans that are part of President Biden’s agenda may be in trouble. Therefore, the Democratic Party has strongly opposed it.
मराठी हिंदी
Related posts:
Spanish Government’s oppression has resulted in a de facto state of emergency in Catalonia: Leader of Catalonia
Opposition slams Biden administration over shortage of ‘Baby Formula’
US to send military and tanks for security of Syrian oil projects, claims US weekly
China and Iran increase number of cyberattacks on the United States
Armed militia groups in US head to US-Mexico border to stop migrants
Face-off between US and Chinese Foreign Ministers at the joint press conference
