The US could enter default as of June 5, the Treasury Department said this Friday, after adjusting the estimated date for a few more days and until an agreement is reached on the debt ceiling.
The United States Treasury Secretary, Janet Yellen, informed Congress this Friday that, if an agreement is not reached to raise or suspend the debt ceiling, the Government You can default on June 5.
In a letter to the leader of the Republican majority in the House of Representatives (lower house), Kevin McCarthy, Yellen extended by four days the date estimated by her department for the end of the reservations, originally scheduled for June 1.
Janet Yellen insisted on demanding that congressmen act “as soon as possible” to avoid this default.
US Republicans acknowledge progress has been made to raise the debt ceiling
“Waiting until the last minute to raise the debt ceiling could seriously damage business and consumer confidence,” the Treasury official added.
Kevin McCarthy acknowledged this Friday that progress has been made in the negotiations to raise the country’s debt ceiling and avoid a default.
“I think there was progress last night. We have to go further,” McCarthy said, referring to the efforts of GOP and Democratic negotiators trying to reach a budget deal.
If there is no increase in the US debt ceiling, the federal government technically goes into defaultrunning out of money to pay their bills, which analysts warn could have dramatic consequences for the national and global economy.
“The only way forward is with a bipartisan agreement,” said the US president.Joe Biden, leaving aside the possibility of trying a unilateral solution from the White House and circumventing the authorization of Congress.
This Friday, the congressmen temporarily suspended negotiations for the weekend, and should only return to the negotiating table on Tuesday (Monday is a national holiday in the US).
Biden will also be absent from the White House this weekend, leaving Friday for the presidential retreat at Camp David, Maryland, and Sunday for his home in Wilmington, Delaware.
For now, and after several weeks of negotiations between the Republicans and the White House, there has been no agreement, with the Democrats refusing to give in to demands for drastic cuts in federal government spending.