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US Treasury warns that there is no “plan b” if an agreement on the debt ceiling is not reached

US Treasury warns that there is no “plan b” if an agreement on the debt ceiling is not reached

Wally Adeyemo, Assistant Secretary of the United States Department of Treasurydeclared that there is no “plan b” of not reaching an agreement between the White House and the Republicans to raise the country’s debt ceiling.

According to the authority, the Treasury does not have an alternative plan that allows the US to “continue to meet” its commitments to “debtors, veterans (…) and the American people” he told CNN.

Likewise, he ruled out the possibility that Joe Biden, president of the United States, could invoke the 14th amendment to the Constitution to unblock the deadlock in the talks, which would allow the debt ceiling to be raised without going through Congress.

As recalled, last week, Biden in statements to the press, during his trip to Japan, was not reluctant to use the power that said amendment to the Constitution confers on him to raise the debt ceiling. In addition, members within his own party have also asked him to do so.

Amendment 14 establishes that the validity of the public debt authorized by law will not be questioned and the president could rely on it arguing that he has a constitutional duty to avoid non-payment.

So far, there is still no official announcement about any progress in the talks between the White House and Republican lawmakers. However, last Thursday, various US media, including The New York Times, reported that sources claimed that an agreement could be announced “soon”. This possible deal would raise the debt ceiling for two years and impose maximum discretionary government spending, except for military or veterans’ affairs.

For his part, the president of Congress, Republican Kevin McCarhty, stated that negotiations with the Biden government “are not easy.” On the other hand, White House spokeswoman Karine Jean-Pierre reiterated her message that a suspension of payments “is not on the table.”

The current debt ceiling of US$31.4 trillion was reached in January, and the country could face default on June 1 if no deal is reached.

Source: Larepublica

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