U. S. may cut costs to avoid default

Budrigannews.com – James Comer, chairman of the House Oversight Committee, stated on Sunday that while he hoped that the United States would not default on its debt, Democrats would have to agree to spending cuts proposed by his fellow Republicans.

“We hope this doesn’t happen. We hope that Democrats and Republicans in the Senate and House will agree to cut spending. Observe, this must end. In an interview with CNN, Comer stated, “We cannot continue to operate with the kinds of deficits that we have.”

Republicans, who now control the House of Representatives, have threatened to use the debt ceiling as a bargaining chip to force the Biden administration and Democrats, who control the Senate, to cut spending.

This has raised concerns in Washington and on Wall Street regarding a bruising dispute over the debt ceiling this year that may be at least as disruptive as the prolonged dispute in 2011, which resulted in a brief downgrade of the United States’ credit rating and years of compelled spending cuts on domestic and military programs.

Therefore, in the midterm elections, Republicans received a mandate from the American people. In an interview with CNN’s “State of the Union,” Comer stated, “We campaigned on the fact that we were going to be serious about spending cuts.”

“Since we’re not going to budge until we see meaningful reform with respect to spending,” the Senate must acknowledge.

On Friday, U.S. Treasury Secretary Janet Yellen stated that the country will likely reach the $31.4 trillion statutory debt limit on January 19, necessitating extraordinary cash management measures to prevent default until early June.

The debt ceiling was enacted by Congress in 1917 to allow the government to borrow more freely. Each increase must be approved by Congress in order to ensure that the United States fulfills its debt obligations and avoids a catastrophic default.

More Is inflation under control in Canada

U. S. may cut costs to avoid default