The United States Secretary of the Treasury, Janet Yellen, criticized this Tuesday that the agreement on the debt ceiling between Democrats and Republicans was achieved “in extremis”, days before the date on which the reserves were expected to run out.
“Although we managed to avoid default, the US once again came dangerously close to the limit. This cannot be normalized like the way we negotiate in Washington.”, he said in his annual appearance before the Committee on Financial Services of the House of Representatives.
According to Yellen, waiting until the last minute hurts the country’s global leadership and international credibility.
“We are a nation that keeps its word and pays its bills. We should never give anyone any reason to think otherwise.”, maintained the Secretary of the Treasury, celebrating in turn that under the command of President Joe Biden, Congress acted to address the situation in time.
The agreement to raise the debt ceiling in exchange for some ceilings on public spending was reached at the end of May in a negotiation against the clock between the White House and the Republicans in the Lower House, led by Kevin McCarthy.
Biden He initialed it on June 2, three days before what was considered by the Treasury so that the reserves were exhausted to continue paying the bills.
Unlike most countries, the United States can only borrow up to the limit set by Congress, which requires legislative agreement each time the country needs to raise it to pay off its debts.
Source: EFE
Source: Gestion
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