(Finance) – The January 19th the United States they will reach the federal debt ceiling, set by Congress in 2021 at approximately $31.4 trillion. The Treasury Department will therefore have to resort to extraordinary measures to avoid the default and continue to fund government activities. However, the use of extraordinary measures to avoid default will only be possible for a period limited.
According to the estimates that are currently circulating, the resources that would be allocated at this moment could move the deadline up to the month of June. In particular, in a letter sent by the secretary to the Treasury, Janet Yellen, the forecast that the “debt issuance suspension period” would last until June 5th. The measure would then give Republicans and Democrats 5 months to find a agreement in Congress to raise or suspend the debt limit. Yellen herself has already recalled in recent days that the government’s inability to meet its obligations would create a “harm irreparable” to the US economy, to the lives of all Americans, and to global financial stability.
Meanwhile, however, the comparison between the two parties is already quite tense with the Republican-led House wanting to use the negotiations to drastically cut the expense publish. “With the adoption of the extraordinary measures, the debt ceiling is officially a time bomb that we cannot defuse in time,” he warned. Brendan Boyledem group leader in the House Budget Committee, who accused the Republicans of “pushing towards default” for political expediency, and urging them to “start governing for the good of Americans”.
(Photo: Kmccoy)