The deadline for raising the state debt limit will come in early June — Yellen
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US Treasury Secretary Janet Yellen confirmed again that her department’s resources will run out in early June if Congress does not approve an increase in the government borrowing limit. She noted that she intends to present more accurate estimates in the “near future.” “Interfax-Ukraine” writes about this with reference to Market Watch.
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Speaking at an event of The Wall Street Journal on Wednesday, Yellen said that the administration of US President Joe Biden is trying to agree with Congress on raising the national debt ceiling.
“We are dedicated to preventing defaults on the national debt and we strive to raise the ceiling on government borrowing,” said Yellen, who participated in the event via video link.
When asked whether the US Ministry of Finance is working out a default scenario together with the country’s largest financial institutions, she replied that her department “does not participate in the preparation of default plans.”
Read: Fitch put the credit rating of the USA on review due to the threat of default
According to Yellen, the Ministry of Finance and Biden will have to make a number of difficult decisions if Congress does not approve an increase in the US government debt limit.
“We will not be able to fulfill some obligations,” she said, adding that it is impossible to set priorities for payments. “We just need to raise the national debt ceiling.”
The Speaker of the House of Representatives of the US Congress, Republican Kevin McCarthy, said on Wednesday that he spoke with a group of negotiators from the White House and the discussion of this issue will continue.
Debt negotiations
The last round of negotiations on raising the debt ceiling in the USA took place on May 24. As Reuters reports, the meeting between President Joe Biden and Speaker of the House of Representatives Kevin McCarthy lasted four hours and will continue later.
McCarthy said that there is progress in the negotiations, and he hopes to reach a compromise.
“We have made some progress in this work. This is very positive. I want to make sure that we have come to the right agreement. I see that we are working in this direction,” he said.
Read also: Biden ruled out announcing a default in the US
The representative of the White House, Karin Jean-Pierre, also admitted that the negotiations were fruitful. “If everything continues in the spirit of goodwill, we will be able to reach an agreement,” she emphasized at a briefing during the negotiations.
Source: Ministry of Finance
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