The US Treasury Department warned that it could reach the debt limit on December 15.
The agency’s secretary, Janet Yellen, sent a statement to Congress that the debate on the increase in the debt ceiling is still pending.
The United States Department of the Treasury warned on Tuesday that the country could reach the debt limit on December 15, so the Government of President Joe Biden may not be able to finance its programs.
Treasury Secretary Janet Yellen expressed her “high degree of confidence” in the Department’s ability to keep payments on US debt up to date but warned that it could run out of cash after allocating $ 118 billion to the Trust Fund. Highway, pick up the ‘The Hill.’
“There are scenarios in which the Treasury would run out of remaining resources to continue financing the operations of the United States Government beyond this date (December 15)” because “the cash flow of the Federal Government is subject to variability inevitable,” Yellen explained in a letter to the Speaker of the House of Representatives, Nancy Pelosi.
Now the Democratic Party must find a way to expand the spending ceiling, a tough challenge based on the statements of Republicans, including the Senate minority leader, Mitch McConnell, who has repeatedly assured that they will not support legislation in these terms.
The Republican Party urged that the Democrats act independently and address the issue through a process known as budget reconciliation. But, at the same time, they are committed to reaching a standard agreement, and have rejected in the first place resorting to the process above, explained the CNN chain.
The Treasury Department now sets this new date after Congress approved an extension of the debt limit in October, responding to Yellen’s warnings about the dramatic economic consequences that could ensue if the matter was not addressed.
Thus, in October, the US Congress approved the increase in the debt limit by 480,000 million dollars – more than 415,000 million euros -, thus preventing the Government from incurring possible defaults at least until December 3.
Following this agreement, McConnell sent a letter to Biden warning him that he would not “provide that assistance” again if his Government entered “another avoidable crisis.”
The US House of Representatives postponed the vote on the billionaire investment plan promoted by Joe Biden after a long debate at the beginning of November.