U.S. Treasury Secretary Janet Yellen warns: US government will run out of money in a few weeks.
U.S. Treasury Secretary Janet Yellen has warned that the U.S. government will repay the debt on December 15. In a letter to House Servant Nancy Pelosi on Tuesday, Yellen called for the debt ceiling to be raised or suspended to ensure the country’s “confidence in the United States and the country’s creditworthiness”.
“There are situations where the Treasury Department does not have sufficient resources to fund the US government’s activities beyond this period,” Yellen wrote, referring to the December 15 deadline.
Democrats and Republicans argue over the limits
The United States had already threatened a default in October, which Congress initially avoided by raising the debt ceiling to $ 480 billion. President Joe Biden’s Democrats and opposition Republicans have been arguing for months over the debt limit.
Yellen’s latest warning about default comes amid tough negotiations over a billion-dollar social and climate protection package Built-back Better planned by Fiden. Republicans in Congress are rejecting the $ 1.85 trillion package, which includes $ 555 billion for childcare, geriatric care and legal health insurance, tax cuts for families and climate policy.