US Treasury Secretary Janet Yellen Reaffirms June 1 To Be A Hard Deadline To Increase Debt Ceiling

Janet Yellen, US Treasury Secretary, reiterated her judgment regarding the deadline set for the US Congress to uplift the debt ceiling.

Yellen also mentioned that if lawmakers didn’t take the action on time, some bills may even go unpaid, as June 1 is a hard deadline.

Yellen stood firm in her assessment that if the debt ceiling failed to raise, whatever decisions are made could have possibly no head and tail.

The House might have to take hard choices if their focus of raising the debt ceiling doesn’t come to fruition.

Biden & The Republicans

Moreover, in reciprocity for their votes to raise the borrowing limit, the Republicans have requested policy changes and spending cuts.

Yellen expressed her concerns regarding the insistence made by the Republicans to take the revenue off the negotiating table.

In order to put down on tax fraud, the Republicans backed to remove funding which has been supplied to the Internal Revenue Service.

Even so, on Sunday, President Biden appealed to the Republicans to renounce their extreme positions as there is no option as default.

Biden was resolute in his decision that the Republicans too have to move with the deal, as bipartisan deals could not be made solely on the Republican’s partisan terms.

The fact remains that the White House and the Republicans continue their negotiation to bring the standoff to an end.

Kevin McCarthy, the House Speaker and Joe Biden Jr., the President of the United States are down in action to continue the talks.

President Biden cut short his overseas trip concerning the G7 Summit in Japan, and had to cancel his visits to Papua New Guinea and Australia so that he could devote more time to his nation’s call.

Biden and McCarthy had shared a word over call on Sunday, and the House Speaker mentioned that even though the talk was productive, a deal was yet to be stuck.

Instead of continuing the negotiations with the Grand Old Party of the United States, progressive lawmakers have urged the President to dwell into matters more concerning such as unilaterally raising the debt ceiling by invoking the Section on Government Debt cited in the 14 Amendment.

Treasury Secretary Yellen shrugged off the idea that President Joe Biden Jr. could come up with such an inappropriate approach owing to the tight time boundations and the legal uncertainties revolving around the circumstance.

Aftermath Of Not Increasing The Debt Limit

Yellen had approached the Congressional leaders in the previous week, stressing that as the debt limit negotiations prolonged, the harm was already half done, taking into account the consequences associated with the default.

Janet Yellen evidently stated in her letter to Congress that a failure in raising the borrowing limit from the government could counter-intuitively put a question mark on its capability to defend the interests of US national security.

Apart from bringing down the global leadership position that the US holds, the fiasco could lead the American families to severe hardships.

For many of the US citizens who depend on the services of the Government, the situation could turn catastrophic if appropriate action is not taken to raise the borrowing limit, causing the global economic downturn.

Yellen highlighted the naked truth that US has had a history of paying its bills on time since 1789, and the same commitment is sought ceaselessly because that is what makes the US Treasury securities to stand out as the safest investment on Earth.

The odds of not paying the bills on time would act unpleasantly against the fourth largest country in the world, and would be unacceptable in the eyes of the government and citizens alike.

Be that as may, Yellen has reportedly warned the Bank CEOs of severe economic upshots if the debt ceiling is not addressed.

Proofread & Published By Naveenika Chauhan