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US Treasury warns that there is no “plan b” if there is no agreement on debt

US Treasury warns that there is no “plan b” if there is no agreement on debt

The Undersecretary of the Treasury Department of USAWally Adeyemo, pointed out this Friday that there is no “plan b” if an agreement is not reached between the White House and the Republicans to raise the country’s debt ceiling.

In an interview with CNN, Adeyemo assured that the Treasury does not have an alternative plan that would allow the United States to “keep complying” with its commitments to “debtors, veterans (…) and the American people.”

The “number two” of the Treasury portfolio ruled out the possibility that President Joe Biden invoke Amendment 14 of the Constitution to unblock the deadlock in talks and that would allow the debt ceiling to be raised without going through Congress.

Invoking the 14th amendment to raise the debt ceiling as a way of avoiding negotiations is not an option”, Adeyemo settled.

Speaking to the press during his trip to Japan last week, Biden was not averse to using the power that the amendment to the Constitution confers on him to raise the debt ceiling, and members within his own party have also asked him to do so. make.

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

For now, there is still no official announcement about any progress in the talks that would show the light at the end of the tunnel in the negotiations between the White House and the Republican legislators.

On Thursday night, several US media outlets, including The New York Times, reported that sources close to the talks claimed that an agreement could be announced “soon”.

The possible agreement would raise the debt ceiling for two years and would impose maximum discretionary government spending, except for military or veterans’ affairs, The New York Times reported.

While talks continue, lawmakers will go on a short Memorial Day recess until Tuesday. However, they will be notified if they have to appear on Capitol Hill for a vote if a deal is announced, CNN reported.

As he left the Capitol on Thursday night, the president of Congress, Republican Kevin McCarhty, said that the negotiations with the Biden government “they are not easy”.

For her part, White House spokeswoman Karine Jean-Pierre reiterated her message on Thursday that a suspension of payments “is not on the table.”

Unlike most countries, the United States can only borrow up to the limit set by Congress – the debt ceiling – which requires legislative agreement each time the country needs to raise it to pay off its debts.

The current debt ceiling, of $31.4 trillion, was reached in January, and the country could find itself in default as soon as June 1 if Democrats and Republicans do not reach an agreement to raise it sooner.

Source: EFE

Source: Gestion

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