Biden Administration Warns US May Hit Debt Limit in a Few Weeks

Contact Your Elected Officials
The Epoch Times Logo

Treasury Secretary Janet Yellen on Wednesday warned the United States could hit its debt limit by next month, warning Congress that she will run out of maneuvering room.

In a letter to leaders of Congress, Yellen said she can’t provide a specific date for when she’ll be not able to keep the federal government funded unless the chamber raises the debt limit. Should that happen, according to estimates from the Congressional Budget Office, funding for Social Security, Supplemental Security Income, and Medicare will likely be halted.

“Given this uncertainty, the Treasury Department is not able to provide a specific estimate of how long the extraordinary measures will last,” the secretary wrote in the letter (pdf). “However, based on our best and most recent information, the most likely outcome is that cash and extraordinary measures will be exhausted during the month of October. We will continue to update Congress as more information becomes available.”

And Yellen warned that once cash on hand and other available measures are exhausted, the United States “would be unable to meet its obligations for the first time in our history.”

The U.S. debt ceiling, which reached $22 trillion in August 2019, is the legal limit on the amount of debt the federal government can borrow, according to the Committee for a Responsible Federal Budget. Lawmakers missed a July deadline to extend former President Donald Trump’s two-year suspension on the borrowing limit, which was reinstated in August 2021.

For months, Yellen has warned lawmakers to raise the U.S. debt limit before the end of July and warned that a delay could cause “irreparable damage to the U.S. economy and global financial markets.”

“Waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” Yellen also wrote in her letter. “At a time when American families, communities, and businesses are still suffering from the effects of the ongoing global pandemic, it would be particularly irresponsible to put the full faith and credit of the United States at risk.”

By Jack Phillips

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Charlie Kirk Assassin Spotted Before Shooting!

Charlie Kirk incident mirrors Trump attempt: shooter spotted on rooftop beforehand, echoing July attack’s circumstances.

In Defense of Radical, Real Ukrainian Sovereignty

My view on the deadliest war in modern history...

Is the Left Trying to Start a Race War?

The murder of Ukrainian immigrant Iryna Zarutska aboard a North Carolina train, caught on video, sparks outrage and claims of internal threats escalating.

Canada Forces Man to Remove Cameras From Private Property Amid Anti-Racism Push

Government expands its surveillance powers, while restricting citizens from monitoring their own property, citing concerns over “racism.”

Are the E. Jean Carroll Lawsuits a RICO Case?

Trump lost his appeal in the E. Jean Carroll cases, leaving him liable for $83.3M. He plans to take the matter to the U.S. Supreme Court.

Charlie Kirk Assassinated at Utah Event

Conservative influencer Charlie Kirk was shot during an event in Utah on Sept. 10, and he has died.

Charlie Kirk Shot and Has Died

Turning Point USA's Charlie Kirk was shot in the neck at an event at Utah Valley University in Orem and he has died according to his family.

Witnesses Recount Scene of Charlie Kirk Assassination

Conservative political activist Charlie Kirk was assassinated on Sept. 10, while speaking in front of a large crowd as part of a campus speaking tour.

Bipartisan Political Leaders Condemn Shooting of Charlie Kirk

U.S. leaders condemned the Sept. 10 shooting of conservative commentator Charlie Kirk at Utah Valley University, calling for unity and a thorough investigation.

Trump Signs Memo Targeting Direct-to-Consumer Pharmaceutical Advertising

President Trump signed a memo to ensure drug ads give fair, balanced, and complete information to protect and inform American consumers.

Trump Runs out of Patience With China, Sharpens His Words

President Donald Trump’s recent remarks targeting China and its allies mark a noticeable shift in tone.

Trump Signs Order Renaming Department of Defense as Department of War

President Donald Trump on Sept. 5 signed an executive order renaming the Department of Defense as the Department of War.

Trump Signs Executive Order Targeting Countries That Unlawfully Detain Americans

President Trump signed an EO on targeting the unlawful detention of American citizens around the world and to facilitate the release of hostages.
spot_img

Related Articles

Popular Categories

MAGA Business Central