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US Treasury Secretary repeatedly warns of default… “There is no choice but Congress”

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Treasury Secretary Janet Yellen, who issued a warning that the U.S. government will go into default next month at the earliest, urged Congress to raise the debt ceiling, saying there is no change in the outlook.

Minister Yellen appeared on ABC on the 7th (local time) and was asked if there was any change in the prospect of default, saying, “We expect the finances to run out in early June.” ” he replied.

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“We’ve used various special measures over the past few months, but even that is running out,” Yellen said. see,” he explained.

“U.S. Treasury bonds are the most secure underlying securities of the global financial system,” he warned, in the event of a default, problems with the U.S. international credit would arise. Secretary Yellen repeatedly used the words “economic disaster” and “economic disaster” to increase the level of pressure on Congress.

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Republicans are arguing that raising the debt ceiling should be accompanied by cuts in the federal budget, but Secretary Yellen emphasized that “negotiations should not be conducted with guns pointed at the heads of the American people.”

Some have raised the possibility that if Congress does not finally raise the debt ceiling, the government may be able to resolve the situation on its own by invoking the 14th Amendment.

However, Secretary Yellen did not give a clear answer to these questions and said, “The president should not go to the stage of considering whether he can continue issuing debt. It will be a constitutional crisis,” he said.

He also asked himself, “What can Congress do if it does not fulfill its responsibilities?” and emphasized that “there is no good option.”

In the United States, legislation limits the amount of money the federal government can borrow. The current debt ceiling in the United States is $ 31,381 billion (approximately 4 trillion 1510 trillion won), which was increased in December 2021.

The Biden administration believes that a default situation could occur on the 1st of next month at the earliest, but it is a position that it must be accompanied by budget cuts for the federal government, the Republican Party, which is the majority party in the House of Representatives.

The Joe Biden administration plans to meet with four congressional leaders at the White House on the 9th, including Senate Democratic Leader Chuck Schumer, Senate Republican Leader Mitch McConnell, House Speaker McCarthy, and Democratic House Representative Hakim Jeffries to discuss a solution to the situation. .

Source: Donga

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