USA, again facing a risk of default due to the debt ceiling

The United States could tYellenener to adopt “extraordinary measuresnext week to avoid a default, Treasury Secretary Janet warned on Friday.

In an email to the new Republican Speaker of the House, Kevin McCarthy, Yellen notes that her portfolio “preparing to adopt this month” the first temporary measures since, if the debt limit is not lifted by Congress, the country could enter into default, something that has always been avoided even in extremis.

“Failure to meet state obligations would cause irreparable damage to the US economy and the livelihoods of all Americans, as well as global finances.”, Yellen insisted, referring to a theme that is recurring in the relationship between the White House and Congress in the United States.

The Republicans could let the clock run down, to force the Democrats to give up some expenses voted before the newly installed legislature.

“Expenses are out of control, there is no supervision and it cannot continue like thisí ”, McCarthy told the press on Thursday. “We must change the way we thoughtlessly spend money in this country and we will make sure that happens”, he indicated.

Pennsylvania Democrat Brendan Boyle criticized Republicans for “consider it normal to take the economy hostage to impose extremist and unpopular reforms”.

The White House asked Congress, where Republicans control the lower house, to increase the country’s borrowing capacity and warned that it will not negotiate to obtain a favorable vote.

Lawmakers have raised or even suspended this limit 78 times since 1960 without much difficulty. But the last time, the seventy-ninth time, in December 2021, there was a lot of tension between the two parties.