(Washington Composite Electric) U.S. Minister of Finance Yellen warned that if Congress did not take timely action, the federal government may exhaust funds on June 1, which caused unprecedented government debt defaults.
In January of this year, after the US federal government touched the legal debt upper limit of US $ 31.4 trillion, the Ministry of Finance took special measures to continue to fund the government's operation;The government will face arrears, which will have a significant impact on the national economy.
Yelun urges Congress to take action to defend US credit as soon as possible
Yellen Monday (May 1) to the Congress of the House of Representatives McCarthy and other Congress leaders, said: "If Congress does not increase or put on hold on the debt limit before, it may be foreseeable that by early June, it may be early to June 1st as early as June 1st.On the day, we will not be able to continue fulfilling all the government's obligations. "
She pointed out that although the exact time point of exhaustion of funds may also be a few weeks later than the latest estimate, but if it is not until the last minute to solve the problem, it will seriously damage the confidence of enterprises and consumers, and improve the public's short -term borrowing loan.Costs have a negative impact on US credit rating.
Yellen urged Congress to take action as soon as possible to maintain US credit and all parties' confidence in the United States."If Congress cannot raise the upper limit of debt, it will bring serious difficulties to American families, damage our global leadership, and make people question our ability to defend national security interests."
Swagel, director of the Budget Office of the U.S. Congress, also issued a statement on the same day that as the federal tax in April was lower than expected, the risk of exhaustion of funds in the Ministry of Finance in early June had increased significantly.
The Republican Party requires reduction of some expenses to increase the upper limit of debt
Republican House controlled by the Republican Party passed a proposal to raise the upper limit of debt, but attached the content of cutting some expenses.The Republican party in the wild pointed to the excessive government expenditure, and the Democratic Party opposed cutting expenses.Because the Senate is controlled by the Democratic Party, this proposal cannot be passed in the Senate to become a decree.
U.S. President Biden called Congress leader on Monday and invited them to discuss countermeasures at the White House on May 9.Agence France -Presse quoted insiders reports that when Biden and McCarthy talked, they discussed the issue of extending government bonds and avoiding breach of breach of contract.
However, both parties seem to have no intention of concession.McCarthy issued a statement that night, accusing Biden of "threatening to let the country fall into a history of the first breach of contract."He called on Biden and Senate to find ways and accept expenses as soon as possible to avoid the crisis of debt defaults.
The Chairman of the Democratic Party Senate Budget Committee Whitehns said: "Republican Party does not agree to simply raise the upper limit of debt, and it has pushed the United States to the edge of economic disasters. Having is not the way to govern the country.When you can still, avoid comprehensive economic pain and instability. "
Akabas, a budget analyst at the US Both Party Policy Research Center, said that the United States is only a few weeks before the potential debt defaults, highlighting that the two parties must reach the urgency of solutions."A country that is regarded as the cornerstone of the financial system should not happen, this will only add uncertainty to the original unstable economy."
In 2011, the US government's endangered debt defaults occurred, which also led to the downgrade of US Treasury credit rating. After multiple bargaining, the two parties resolved the crisis.In the past 10 years, the United States has also repeatedly occurred around the debt limit problem, but most of them have finally been resolved, which has not caused a large market turmoil.
According to Reuters, senior politicians who have witnessed the chaos in 2011 said that the negotiations this time may be more difficult than that year.
