RT.com
23 May 2023, 04:14 GMT+10
The current borrowing limit is a constraint on Washington's ability to meet its obligations, Janet Yellen insists
America's chances of paying its bills after June 1 are "quite low," US Treasury Secretary Janet Yellen warned on Sunday in an interview with NBC's 'Meet the Press'.
According to Yellen, if Congress fails to reach an agreement on raising the country's $31.4 trillion borrowing limit by that time, it will be forced to default on "some bills" shortly after.
"There's always uncertainty about tax receipts and spending. And so it's hard to be absolutely certain about this, but my assessment is that the odds of reaching June 15, while being able to pay all of our bills, is quite low... My assumption is that if the debt ceiling isn't raised, there will be hard choices to make about what bills go unpaid," Yellen said.
The treasury secretary did not say which 'bills' she had in mind, but noted that the government's most immediate obligations range from paying interest on outstanding debt to "obligations to seniors who count on social security, military, contractors who've provided services to the government."
She added that "there can be no acceptable outcomes if the debt ceiling isn't raised."
The administration of US President Joe Biden and Republicans led by House Speaker Kevin McCarthy have been at an impasse over raising the debt ceiling for several months, despite warnings that the US could face its first-ever default unless it is raised by June 1.
Republicans are refusing to agree to the move unless Biden agrees to government spending cuts and curbs on social programs.
Some lawmakers have called on Biden to invoke his powers under the 14th Amendment to the Constitution and bypass Congress and unilaterally raise the debt ceiling. However, Biden told reporters on Sunday that while he has considered doing so, there is likely not enough time before the deadline.
Biden and McCarthy are scheduled to meet again on Monday to discuss the matter.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Knoxville Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Knoxville Times.
More InformationBRUSSELS, Belgium: EU tech chief Margrethe Vestager has said that a draft code of conduct on artificial intelligence (AI) could ...
MOSCOW, Russia: After a turbulent 15 months of store closures and declining demand, Russian designers and brands are assisting the ...
WASHINGTON D.C.: The Federal Communications Commission (FCC) has said that more than 8.3 million US homes and businesses do not ...
CHICAGO, Illinois: Driven by an ongoing shortage of properties available on the market, in March US single-family home prices rose ...
MIAMI, Florida: Carnival Cruise Lines has said a cruise ship, the Carnival Sunshine, which sailed through rough seas off the ...
BEIJING, China: On his return to China after a three year absence, which is his company's largest production hub, Tesla ...
PYONGYANG, North Korea: North Korea attempt failed to launch a satellite on May 31, which prompted raid sirens and a ...
PYONGYANG, North Korea: North Korea attempt failed to launch a satellite on May 31, which prompted raid sirens and a ...
HONG KONG, China: Describing the lack of women in China's top leadership as concerning, the United Nations has recommended the ...
HONG KONG, China: Describing the lack of women in China's top leadership as concerning, the United Nations has recommended the ...
BEIJING, China: Amid its rivalry with the US for reaching new milestones in space, reflecting their competition for global influence, ...
WASHINGTON D.C.: A Transportation Security Administration (TSA) report released this week revealed that over the Memorial Day weekend, the start ...