Yellen calls for raising the national debt
2023.01.13 14:43
Yellen calls for raising the national debt
By Ray Johnson
Budrigannews.com – On January 19, which is less than a week away, the federal government will reach its borrowing limit of $31.4 trillion, and Treasury Secretary Janet Yellen has urged Congress to raise the debt ceiling.
In a letter to House Speaker Kevin McCarthy (R-Calif.), Yellen stated that the Treasury will begin making some maneuvers to buy some time and continue meeting the government’s obligations, but those efforts will largely be exhausted before early June.
The total amount the government can borrow to pay for everything from Social Security and Medicare benefits to military salaries and interest on the national debt is known as the statutory debt limit. The amount was increased by Congress in December 2021.
The letter stated that Congress must “immediately act to increase or suspend the debt limit.” The U.S. economy, the livelihoods of all Americans, and global financial stability would suffer irreparably if the government did not fulfill its obligations.
The letter continues a now-recognizable battle on Legislative center Slope over as far as possible. House Republicans, who now control the majority, have been insisting on spending reductions. Those requests have been rejected by Democrats, who control both the Senate and the White House. The United States’ credit rating was downgraded in 2011 as a result of the dispute over the debt ceiling.
After 15 rounds of voting, McCarthy prevailed over a split in his own caucus to take the speakership. In exchange for raising the debt ceiling, he has stated that lawmakers could impose a spending cap. During his first press conference as Speaker on Thursday, he stated, “Spending is out of control here.” We can’t keep following the same procedure.
The Speaker went on to say that he would like to talk to Democrats. When he called, I had a very good conversation with the president, and I told him I would like to meet with him early to work through these issues.
More Biden’s annual speech is scheduled for Feb 7
