After US Treasury Secretary Janet Yellen warned that the United States threatened to default on its debts by June, US President Joe Biden called Monday for a meeting at the White House next week, both Republican House Speaker Kevin McCarthy and House Democrats leader Hakeem Jefferies, And Senate Majority Leader Chuck Schumer, and Republican leader Mitch McConnell in an attempt to resolve a dispute between Republicans and Democrats over raising the borrowing ceiling.
The American president called Joe Biden The four most prominent leaders in Congress are due to take part in a meeting at the White House next week, after the Treasury Department warned that available cash may not be enough to pay the government’s obligations by June.
This prompted Biden to call a meeting with leaders, including Republican House Speaker Kevin McCarthy, on May 9.
On Monday, US Treasury Secretary Janet Yellen warned that the United States is at risk of defaulting on its debts, as of the beginning of June.
Janet Yellen said in a letter to Republican Speaker of the House Kevin McCarthy: “Our best estimate is that we will be unable to continue to meet all of the government’s obligations by early June, and possibly as of June 1, if Congress does not raise or suspend the debt ceiling before then.” the date”.
“Given current projections, it is imperative that Congress move, as quickly as possible, to increase or suspend the debt ceiling in a manner that provides long-term certainty that the government will continue to make its payments,” she added.
Biden invited McCarthy, who is in Jerusalem on a diplomatic visit, to the meeting, the leader of the Democrats in the House of Representatives, Hakeem Jefferies, the majority leader in the Senate, Chuck Schumer, and the Republican leader, Mitch McConnell.
House Republicans passed a bill to raise the debt ceiling last week, including sharp spending cuts, which Biden and the Democratic-controlled Senate said they would not agree to.
Failure to reach action before the new date, set by the Treasury Department of June 1, could force the United States to default on some obligations on an unprecedented scale.
Biden insists that he will not negotiate raising the debt ceiling, but will discuss budget cuts after the approval of a new ceiling. Congress usually links raising the debt ceiling to other budget and spending measures.
After hitting the government debt ceiling of $31.4 trillion on January 19, Yellen told Congress that the Treasury Department would continue to pay liabilities through extraordinary cash management measures.