The US Treasury Department may not be able to service the national debt by June 1 if Congress does not increase borrowing limits. This is stated in an open letter from the head of the department, Janet Yellen, to members of the Congressional leadership.
“Our best estimate is that we will not be able to continue to meet all government commitments by early June and possibly as early as June 1, unless Congress raises the debt ceiling by here there,” Yellen wrote.
Earlier, US House of Representatives Speaker Kevin McCarthy unveiled his bill to increase public debt. It is proposed to increase the borrowing limit by $1.3 trillion through March 31, 2024, whichever comes first. According to McCarthy, Biden has a choice: sit down at the negotiating table or “cover his ears, refuse to negotiate and risk the first default in the history of the United States”.
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