Yellen said President Joe Biden will have to make decisions about what to do with Treasury resources if the debt ceiling isn’t raised, but “there are no good options.”
She went on to say that Biden had hoped to lay the groundwork for a process of discussing and resolving these issues with Republicans in Congress, but he would not do so in distress, according to CNBC.
Earlier on Monday, US Treasury Secretary Janet Yellen said: “It is simply unacceptable that Congress is threatening economic disaster for American households and the global financial system like the cost of raising the debt ceiling.
The US public debt ceiling has been legally set and can only be raised by passing an act in Congress signed by the President.
And in late April, the House of Representatives, led by Republicans bracing for a showdown with President Joe Biden, voted to raise the borrowing limit, but only with drastic cuts to curb what the party sees as spending. excessive.
The bill has no chance of being passed in the Senate, with a slight Democratic majority.
Biden has so far refused to negotiate, pointing out that the debt ceiling has been raised dozens of times over the years, including under former Republican President Donald Trump.
But Republicans insist that Biden’s refusal to discuss the issue is the main obstacle.
“The president refused to negotiate, Senator James Lankford, a member of the Senate Appropriations Committee, told ABC. That was the most exciting part.”
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